The Manufacturers Association of Nigeria (MAN) has cautioned the federal government against any increase in electricity tariffs this year, warning that it would further weaken Nigerian businesses, escalating production costs, worsen inflation, and force more private enterprises to shut down.
The Trade Union Congress of Nigeria (TUC) has also opposed the proposed 65% hike in electricity tariffs, describing it as an economic burden on already struggling citizens.
Meanwhile, the Kaduna State Government has stepped in to mediate an industrial dispute between Kaduna Electric and its workers’ union, which resulted in a four-day power outage across the company’s service areas.
MAN’s Director-General, Segun Ajayi-Kadir, emphasized that electricity is a critical input in manufacturing, significantly affecting production costs and product prices. He criticized the frequent tariff increases, stating that they hinder industrial growth. Ajayi-Kadir noted that despite privatizing the power sector in 2013 to boost supply, the move has not yielded positive results. He attributed this failure to the technical and financial limitations of operators in the electricity value chain.
He highlighted that despite Nigeria’s installed electricity capacity being around 10,000 megawatts, actual supply remains insufficient due to the inefficiencies of Generation and Distribution Companies (GenCos and DisCos). He also pointed to a 5.03% decline in electricity supply between Q2 2023 and Q2 2024, despite a 230% tariff increase.
Ajayi-Kadir urged the government to reject any further tariff hikes and instead conduct a thorough review of DisCos’ performance and their impact on manufacturers, businesses, and households. He also called for an audit of DisCos’ investment in power distribution infrastructure.
TUC President Festus Osifo, speaking after the union’s Q1 2025 National Administrative Council meeting, condemned the proposed hike, labeling it a “deliberate act of economic oppression” against Nigerians. He noted that previous increases had already caused widespread hardship.
In Kaduna, Deputy Governor Hadiza Balarabe urged both Kaduna Electric and the workers’ union to resolve their dispute swiftly, emphasizing that the blackout was affecting businesses, homes, and security.
The National Union of Electricity Employees (NUEE) argued that while it was not against job cuts, proper procedures should be followed, and workers’ entitlements paid. Kaduna Electric’s Managing Director, Umar Hashidu, defended the company’s decision to lay off 444 workers, stating that it was necessary to ensure its financial survival.
