The Organised Private Sector (OPS) has warned that more than two-thirds of private businesses in Nigeria are at risk of shutting down due to increased operating costs caused by the federal government’s decision to increase electricity tariffs.
Issuing this warning in a statement on Wednesday, the OPS lamented that the increase was an additional burden on businesses already grappling with macroeconomic instability, infrastructural deficits, and other supply-side constraints that hinder the productivity of the nation’s economic sector.
The statement read, “The unwarranted increase will worsen the upward swing in inflation, aggravate the pressure on the disposable income of the average Nigerian, and lead to the closure of many private businesses.
“What is most worrisome with the Nigerian case is that the electricity to be supplied is inadequate.”
The cumulative effect, they warn, could lead to an escalation of the current high levels of unemployment and insecurity.
Naija News recalls the Nigerian Electricity Regulatory Commission’s approval on April 3 of a substantial 245 per cent increase in electricity tariffs for Band A customers, who typically receive at least 20 hours of power daily.
Despite the hike, businesses and residents continue to experience inadequate power supply, a long-standing issue that undermines economic growth and development.
However, various organizations, including the Nigeria Labour Congress, the Trade Union Congress, and numerous concerned citizens, have voiced their opposition, calling for a reversal of the hike.
Source: Naija News
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