Rédaction Africa Links 24 with Taiwo Amodu
Published on 2024-04-08 11:36:39
The Tinubu Media Support Group (TMSG) has recently criticized the Manufacturers Association of Nigeria (MAN) for their disapproval of the increase in electricity tariffs. The MAN claimed that the hike would raise their production costs, with certain state chapters expressing concerns that it would strangle Small and Medium Size Enterprises (SMEs).
In response, the Chairman of TMSG, Jesutega Onokpasa, stated that the new tariffs for premium electricity consumers would actually enhance productivity for manufacturers. He argued that stable electricity would reduce the need for alternative power sources like diesel generators, ultimately leading to a decrease in production costs.
According to Onokpasa, the tariff adjustment aims to provide more power to consumers, reduce their reliance on generators, and lower their production costs. This, in turn, would benefit the economy as a whole. TMSG believes that the notion that manufacturers will pass on the extra costs to consumers is misleading, as it would actually result in a reduction in production costs and potentially lower prices for consumers.
The group commended the government’s initiative and highlighted that 85% of Nigerians would still receive subsidies on power, as only 15% of consumers fall under the Band A category. TMSG emphasized that the recent tariff adjustment by the National Electricity Regulatory Commission (NERC) primarily affects consumers in Band A who enjoy extended electricity supply daily.
Furthermore, TMSG debunked claims made by opposition elements seeking to capitalize on the tariff increase for political gain. They clarified that the poor and less privileged are still benefiting from electricity subsidies, urging the public to ignore misinformation spread for selfish political interests.
Overall, TMSG believes that the tariff adjustment will benefit manufacturers by reducing production costs and improving productivity, ultimately contributing to economic growth. They maintain that the adjustment primarily targets consumers in Band A and will have minimal impact on ordinary electricity consumers outside of that category. TMSG encourages a focus on the actual facts of the situation rather than sensationalizing the tariff increase for political purposes.
Read the original article on Nigerian Tribune
