Recent uproar from the Organised Private Sector in Nigeria (OPSN) signals a dire warning: over 65% of businesses could face closure due to the recent surge in electricity tariffs. In a joint statement addressed to President Bola Tinubu, OPSN, representing key industry players including the Manufacturers Association of Nigeria (MAN), raised concerns over the drastic increase in electricity tariffs imposed without adequate consultation.
The OPSN highlighted the adverse impact of this tariff hike on the competitiveness of Nigerian businesses, particularly in the face of inadequate electricity supply. The move, they argue, contradicts the Multi-Year Tariff Order (MYTO) and fails to reflect the current exchange rate reality, further burdening already struggling enterprises.
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With Nigeria now ranking third globally in terms of high electricity costs, surpassing even industrial giants like Germany and the United Kingdom, the OPSN stresses the urgency for government intervention. The timing of the tariff hike, amidst macroeconomic instability and infrastructure deficits, only exacerbates the challenges faced by the private sector.
The looming threat of business closures looms large, with over 65% of private enterprises, especially manufacturing concerns and Small and Medium Enterprises (SMEs), at risk. Urgent action is needed to prevent irreversible damage to Nigeria’s economic landscape and safeguard the future of its businesses.
