{"id":27816,"date":"2024-04-18T07:54:47","date_gmt":"2024-04-18T07:54:47","guid":{"rendered":"https:\/\/abujacityjournal.com\/livenews\/?p=27816"},"modified":"2024-04-18T07:54:47","modified_gmt":"2024-04-18T07:54:47","slug":"private-sector-alarmed-by-65-business-closure-threat-amid-electricity-tariff-surge","status":"publish","type":"post","link":"https:\/\/abujacityjournal.com\/livenews\/2024\/04\/18\/private-sector-alarmed-by-65-business-closure-threat-amid-electricity-tariff-surge\/","title":{"rendered":"Private Sector Alarmed by 65% Business Closure Threat Amid Electricity Tariff Surge"},"content":{"rendered":"
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The Organised Private Sector (OPSN) has raised alarm over the potential closure of over 65% of private businesses, particularly within the manufacturing sector and SMEs, following the introduction of a new electricity tariff set at N225\/kwh for Band A customers.<\/p>\n

Expressing urgent concerns, the Association has called for the suspension of the tariff’s implementation to facilitate inclusive dialogue among stakeholders. They emphasize the necessity for transparent mechanisms in determining and setting tariffs, citing the need for joint agreement among all parties involved.<\/p>\n

Nigeria’s electricity costs now rank third globally, following Germany and the United Kingdom, according to the Association’s observations.<\/p>\n

Representing a consortium of major Business Membership Organisations (BMOs), including the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers\u2019 Consultative Association (NECA), Nigerian Association of Small-Scale Industrialists (NASSI), and Nigerian Association of Small and Medium Enterprises (NASME), the OPSN underscores the severe impact of the tariff hike on more than five million businesses across Nigeria.<\/p>\n

The Association highlights widespread discontent among its member-companies regarding the lack of consultation preceding the significant tariff increase by the Nigerian Electricity Regulatory Commission (NERC) for Band A customers.<\/p>\n

This sudden escalation, coupled with inadequate electricity supply, threatens the competitiveness of Nigerian businesses and exacerbates the already high cost of production.<\/p>\n

Furthermore, the current tariff hike contradicts the previously established cost-reflective tariff of N114.8\/kwh, as outlined in the MYTO Order referenced NERC\/2023\/05. The Association emphasizes that this increase fails to consider the recent appreciation of the naira against the dollar, further compounding the financial burden on businesses.<\/p>\n

Examining the impact of the tariff increase on a medium-sized company utilizing 700 kW, the Association reveals a staggering annual electricity cost of approximately N1.4 billion. In comparison, a similar-sized company in China incurs a mere fraction of this expense.<\/p>\n

Of utmost concern is the discrepancy between the exorbitant tariffs and the inadequacy of electricity supply, compounded by macroeconomic instability, infrastructure deficits, and other supply-side constraints plaguing Nigeria’s productive sector.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Organised Private Sector (OPSN) has raised alarm over the potential closure of over 65% of private businesses, particularly within the manufacturing sector and SMEs, following the introduction of a new electricity tariff set at N225\/kwh for Band A customers. Expressing urgent concerns, the Association has called for the suspension of the tariff’s implementation to […]<\/p>\n","protected":false},"author":7,"featured_media":26907,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[],"class_list":["post-27816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/27816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=27816"}],"version-history":[{"count":3,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/27816\/revisions"}],"predecessor-version":[{"id":27840,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/27816\/revisions\/27840"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/26907"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=27816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=27816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=27816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}