Private Sector Warns: Electricity Tariff Hike Threatens Business Survival

Private Sector Warns: Electricity Tariff Hike Threatens Business Survival

The Organised Private Sector (OPS) has issued a stark warning, indicating that over two-thirds of private businesses in Nigeria face the risk of closure due to the recent increase in electricity tariffs by the federal government……READC ALSO Subsidy Removal: Govt To Pay Workers N10,000, Asks Private Sector To Follow Suit

This hike in tariffs adds to the already challenging operating costs faced by businesses, exacerbating macroeconomic instability, infrastructural deficits, and other supply-side constraints.

In a statement released on Wednesday, the OPS expressed deep concern over the impact of the tariff hike, stating that it would further fuel inflation, strain disposable income, and ultimately lead to the closure of many private enterprises. Moreover, the OPS highlighted the inadequacy of electricity supply despite the increased tariffs, compounding the challenges faced by businesses.

The cumulative effect of these developments could result in heightened levels of unemployment and insecurity, posing significant threats to economic stability and growth.

The Nigerian Electricity Regulatory Commission’s approval of a substantial 245 per cent increase in electricity tariffs for Band A customers has stirred widespread discontent among businesses and residents alike. Despite the tariff hike, the persistent issue of inadequate power supply persists, hampering economic development efforts.

In response to the tariff hike, various organizations, including the Nigeria Labour Congress, the Trade Union Congress, and concerned citizens, have voiced their opposition, advocating for a reversal of the decision.

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