The Abuja Chamber of Commerce and Industry (ACCI) has voiced its worries about the recent rise in electricity prices, highlighting potential threats to the long-term viability of businesses.
In a conversation with the News Agency of Nigeria (NAN) in Abuja, ACCI President Mr. Emeka Obegolu expressed concerns that this increase would adversely affect businesses throughout different sectors of the economy.
He noted the existing difficulties entrepreneurs and investors are grappling with and suggested that Small and Medium Enterprises (SMEs), vital to the economic fabric, would suffer considerably due to the increased tariffs.
- He stated, “Many enterprises are already struggling with reduced demand, supply chain disruptions, and financial constraints. The burden of higher electricity tariffs exacerbates their challenges and threatens their long-term viability.”
- “As advocates for the business community, we urge relevant authorities to reconsider this decision and explore alternative solutions that prioritise the needs of businesses and support ease of doing business.”
- “It is vital to strike a balance between ensuring a sustainable energy sector and mitigating the adverse effects of tariff hikes on businesses, particularly during these trying times,”
New tariff will stifle innovation
The president stated that the rise in tariffs would obstruct the ability of businesses to invest in new technologies and growth, and it would affect their competitive edge in local and global markets.
He further mentioned worries that the increased tariffs, along with other economic hurdles like the elimination of fuel subsidies and the consolidation of foreign exchange rates, might exacerbate the challenges encountered by businesses.
Backstory
- Last week, the Nigerian Electricity Regulatory Commission (NERC) increased the electricity tariffs for Band A consumers by over 300% from around N66 per KWh to N225 per KWh. The commission noted the hike only affect around 17% of the total electricity consumers in the country who receive up to 20hrs of electricity daily.
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