Business
THE Association of Table Water Producers of Nigeria (ATWAP), Ogun Chapter, has decried the 300 per cent increase on electricity tariff approved by Nigerian Electricity Regulatory Commission (NERC).
Mr Babatunde Lawal, state Chairman of ATWAP, told the News Agency of Nigeria (NAN) on Thursday in Ota, that the hike would further raise the cost of production.
Lawal noted that electricity was central and important to development in any economy, adding that it contributed about 30 per cent requirement in the table water production industry and generally in manufacturing as it provides lightings and powers machines and tools.
“An increase of 300 per cent will drive up costs as expenses will go up, if it translates to availability of electricity.
“The effect may be marginal as we currently pay a fortune buying diesel and premium motor spirit at the moment.
“However, the average household will have to pay more for the products while consumers may purchase less as purchasing power reduces,” he said.
He appealed to the Federal Government to provide loans needed to support their businesses as capital had been eroded following the hike.
He added that it was time for businesses to reassess strategies for profit making as a result of the current challenges in the country.
NAN recalls that Mr Musliu Oseni, the Vice Chairman, NERC, on Wednesday in a statement in Abuja, said that with the newly approved tariffs, subsidies for the 2024 fiscal year are expected to reduce by about NGN1.14 trillion.
Oseni said that this was in furtherance of the Federal Government’s realignment of the subsidy regime. (NAN)
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-April 04, 2024 @ 16:50 GMT|
Tags: Association of Table Water Producers of Nigeria Mr Babatunde Lawal Mr Musliu Oseni NERC
