The Chairman of the Manufacturers Association of Nigeria (MAN), Mr. Okwara Udensi for the Edo/Delta branch has said that the proposed plan by the Federal Government to adjust electricity tariffs will translate to an increase in the cost of goods and services.
He made the comment in Benin Wednesday.
According to Mr. Udensi, the Nigerian economy was not ready for adjusted earnings in power due to a recession, pointing out that the increase would affect operations of SMEs, forcing closures.
“The economy is in a bad shape, we are in recession, so an increase in electricity tariff will translate to an increase in the cost of goods and services. Besides, the purchasing power of the people is low and people will not buy goods produced at very high cost and this will lead to most SMEs becoming moribund.”
MAN warned that operations would raise the cost of production and rather than being taxed with increasing costs, manufacturing companies needed the Nigerian government to pull Nigeria out of recession, Nairametrics said.