From Anthony Nwachukwu, Lagos
The Manufacturers Association of Nigeria (MAN) has appealed to the Federal Government to wade into the tariffs rift between it and the electricity Distribution companies of Nigeria (DisCos).
The group frowned at the disconnection of facilities of members of the association by the DisCos despite court order prohibiting them from doing so.
President MAN, Otunba Francis Meshioye made the appeal in his Welcome Address at the 4th Adeola Odutola Lecture and Presidential Luncheon which was the last lap of activities marking the 52nd Annual General Meeting (AGM) of MAN.
The event which attracted creme de la creme in the manufacturing sector, with the theme “The Imparatives of an Intentional Development of the Nigerian Manufacturing Sector” took place at the Lagos Oriental Hotel, Lekki, Lagos, on Thursday.
Meshioye who said that MAN would continue to seek the intervention of the government to resuscitate ailing industries and restore investor’s confidence in the manufacturing sector, mentioned High energy costs and frequent hike in electricity tariffs as bane of the manufacturing sector.
He said that the arbitrary hike in electricity tariffs is highly worrisome. “It is unfortunate that the Distribution companies (DisCos) persistently disconnected manufacturing facilities from the national electricity grid, despite payment of current electricity charges on existing tariff, and against court injunction prohibiting them.
“We have consistently maintained that manufacturers will struggle without rate above 100% increment in the electricity tariffs.
“Electricity costs alone accounted for more than 35% of an average manufacturer’s cost structure,” he said.
Otunba Meshioye appealed to the government to do all within it’s power to intervene in the electricity tariffs for the manufacturers. “The government should wade in to address this issue for the sector to thrive.
Otunba Meshioye further enumerated other challenges facing the manufacturing sector which he said are both internal and external. The eternal challenges include the continued geopolitical risks and uncertainty, the escalating trade wars, and the recent global protectionist policies, such as changes in tariffs and quotas restricting international trade flows.
