The Abuja Chamber of Commerce and Industry (ACCI) has faulted the proposed move by the Abuja electricity distribution company (AEDC) to increase the electricity tariff saying it would inflict more hardship on the business community and Nigerians.
The AEDC has announced moves to increase the prices of electricity tariffs in franchise locations, especially in the Federal capital territory (FCT) due to the removal of fuel subsidies and the depreciation of the Naira occasioned by the unification of the foreign exchange market which has resulted in the increase of goods and services across the country.
The Managing Director AEDC, Engr. Adeoye Fadeyibi stated the reason for the increment in electricity as subsidy removal, high exchange rate, and other factors, adding that this will be done transparently.
In recent times, businesses have been down as a result of fuel subsidy removal, and if the increase in electricity tariff is not halted it would become tougher for Nigerians that are managing to survive thereby leading many to theft, depression, street begging, health challenges, frustrations, or even death.
The President of ACCI, Dr Al-Mujtaba Abubakar who was reacting on behalf of the businesses community stated that the proposed move of the electricity company to increase tariff would further frustrate the ease of doing business as many enterprises are struggling to meet up to their obligations which has led to the sack of employees and the closure of many SMEs across the country adding that this plan would further bring hardship on entrepreneurs that are struggling to survive.
“Apart from the removal of fuel subsidy, the electricity company has not lived up to expectations in the delivery of power to subscribers as issues such as extortion from consumers for installation of meters, and lack of power supply for many hours and days among other issues has led to increased consumption of generators as an alternative source of power for business which is expensive to maintain.
“As the voice in the business community, we urge AEDC to step down the proposed move to hike the price of electricity tariff and focus more on metering every structure in their franchise location to increase revenue while also paying attention to improving the supply of power as it will help reduce inflation and improve the ease doing business”, Dr Abubakar stated.
You may recall that different stakeholders including the National House of Assembly and Nigerian Labour Congress have kicked against the Federal Government’s moves to increase electricity tariff adding urging the Federal Government to consider the recent increase in petrol prices that has already burdened many Nigerians.
The stakeholders emphasised that it is inappropriate and insensitive to introduce such a significant tariff increase at a time when citizens are still grappling with the impact of the petrol price surge.
The president of Hotels Owners Forum Abuja (HOFA), Barr Funmi Kazeeem at a forum to address the challenge the increment would have in businesses while sharing her experience describe the high cost that hoteliers are already experience at the moment as worrisome.
“We are using this forum to express how we feel because if you have to increaese this tariff, it will run so many hotel down because right now, we are all striving to stay alive. We talk about carpet and so many things that we mention here, I know there’s a mandate as regards the mandate but is AEDC falling in the mandate? We were told that if we are on plan A, we have to pay more so that we can get morw power, but are we getting it? We are supposed to have 20 hours power supply per day but we don’t get up to that.
The Chairman of the Nigerian Electricity Consumers Advocacy Network (NECAN), Chief Tomi Akingbogun stated thay tourism itself is a competitive market and tourists will only move to countries where the prices of accommodation is favourable.
“So, by increasing our electricity cost in Nigeria which is already taking 35 to 40 percent of the cost of running the hotel including other cost it would crash the hotels business. The same thing alis affecting the manufacturing industyr and that is why many of them have left the country. If we allow cost of doing business in Nigeria to be so high, the future will be very dim for tourism and all out potential will be wasted.”
The ACCI President, however, pleads with the necessary authorities to look inward into the policy of tariff increment for a realisable consensus and resolution, agitating with the #tag “No to Tariff Increase; No.”
Signed
Dr Al-Mujtaba Abubakar (MFR, FCA)
President, ACCI
