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OPS Opposes Electricity Tariffs’ Increase

As the global economy is undergoing economic crisis occasioned by the dreaded Coronavirus pandemic, the Nigerian economy is not left out, hence the organised private sector has unanimously kicked against any form of increase in electricity tariffs as it will further hamper the country’s economic development.
The OPS, which comprises of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Manufacturers Association of Nigeria (MAN), Nigerian Association of Small and Medium Enterprises (NASME), Nigerian association of Small Scale Industries (NASSI) and Nigeria Employers Consultative Association (NECA) recently in a communiqué stated that the OPSN was not in support of any minor, major and extra-ordinary tariff review or the proposed upward review in electricity in an economy that just came out of recession and currently experiencing fragile growth such that extra-ordinary upward review will be counterproductive on consumption and productivity.
Speaking to the leader of the OPSN, Hajia Saratu Iya-Aliyu, who is also the national president of NACCIMA, she noted that any form of increase in electricity in the face of inadequate electricity supply, high electricity tariff and exorbitant cost of self-generated electricity up to the tune of N119billion (excluding billions of Naira spent on settling monthly electricity bills) is not business friendly, and will further escalate the cost of doing business with consequential upward spiral effects on unemployment rate.
According to her, the resolutions of the OPSN is that; “The reviews in electricity tariff since Multi Year Tariff Order (MYTO) 2015 has produced escalation in tariff between 2015 and 2020 across the ‘D’ electricity tariff categories.
For instance, with IKEDC, D1 category tariff increased by over 44 percent from 2015 to 2020; D2 and D3 by over 50 per cent for the same period, respectively.
The increase and burden of cost of electricity for the same period are even more in the other electricity distribution companies where tariffs are quite higher.
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