MAN

Electricity Tariff Hike Will Drive Multinational Companies Out of Nigeria, MAN Warns

In a press conference held yesterday, the Manufacturers Association of Nigeria (MAN) issued a stern warning about the potential consequences of implementing the proposed electricity tariff hike by power distribution companies. MAN’s President, Francis Meshioye, expressed concerns that this move could force more multinational companies to relocate their factories outside of Nigeria. Meshioye further revealed that some international manufacturing firms had already exited the country due to the challenging business environment.

The proposed increase in electricity tariffs has been a topic of heated debate and speculation as power distribution companies seek to address the pressing issue of inadequate revenue generation. However, MAN believes that such a measure could have far-reaching negative implications for the Nigerian economy.

During the press conference, Meshioye highlighted the dire situation faced by manufacturers in the country, stating, “The implementation of the proposed hike in electricity tariffs will only exacerbate the already difficult operating conditions for manufacturers in Nigeria. The rising cost of electricity will undoubtedly impact production costs, making it increasingly unviable for multinational companies to continue their operations here.”

According to MAN’s assessment, multinational firms that have already exited Nigeria cited multiple factors, including an unreliable power supply, high energy costs, and an unfavourable business climate. The potential increase in electricity tariffs would only further erode the competitive edge of manufacturers, potentially leading to additional factory closures and job losses.

The manufacturing sector plays a crucial role in Nigeria’s economy, providing employment opportunities, driving economic growth, and fostering technological advancement. Any further exodus of multinational companies would deal a severe blow to the country’s industrial landscape and hinder its efforts to attract foreign direct investment.

MAN has called upon the Nigerian government to reconsider the proposed electricity tariff hike, emphasising the need for a comprehensive review of the power sector to address the underlying issues affecting the manufacturing industry. Meshioye urged the government to prioritise sustainable and affordable energy solutions as well as create an enabling business environment that would encourage both local and foreign investment.

The ball is now in the court of the government and relevant stakeholders, as they must carefully assess the potential consequences of the proposed tariff hike and work towards finding alternative solutions that will ensure the sustainability and growth of the manufacturing sector in Nigeria.