Nigerian Manufacturers Demand Electricity Tariff Cut, Warn Against Politicising GDP Rebasing
The Manufacturers Association of Nigeria (MAN) has reaffirmed its commitment to pushing for a reduction in electricity tariffs, warning that the Federal Government’s approach to economic reforms, including the planned rebasing of Gross Domestic Product (GDP), must not be politicised.
At its recent presidential media luncheon in Lagos, MAN’s leadership underscored the crippling effect of high electricity costs on manufacturers and vowed to persist in its campaign for a downward review in 2025.
Francis Meshioye, President of MAN, condemned the 250 per cent hike in electricity tariffs, describing it as economically unsound and unsustainable.
“Our next line of action on electricity tariffs is that we will not stop advocating for a reduction,” Meshioye declared. “I don’t see any logic in having an increase of 250 per cent at a go. There should be a structured, gradual approach to tariff adjustments to avoid stifling businesses.”
He criticised the government’s reluctance to engage meaningfully with the association’s concerns, calling for a roundtable discussion to establish a fairer pricing mechanism.
A System in Disarray
MAN’s Director-General, Segun Ajayi-Kadir, detailed the association’s ongoing battle against the tariff increases, highlighting legal and regulatory obstacles faced by manufacturers.
“We petitioned the Nigerian Electricity Regulatory Commission (NERC), but while our petition was pending, our factories were being disconnected,” Ajayi-Kadir said. “We sought court intervention, but somehow, they secured a political judgement that dismissed our case and vacated our injunction.”
He also pointed to the persistent instability of Nigeria’s power supply, noting that alternative energy sources now contribute approximately 6,500 megawatts—surpassing the 4,000 to 5,000 megawatts generated by the national grid.
“Last year alone, we witnessed 12 national grid collapses,” he revealed. “And yet, a 250 per cent increase in tariffs has not solved the problem.”
Ajayi-Kadir questioned the government’s rationale for the tariff hike, arguing that it merely funded inefficiency rather than improving service delivery.
“If you say you’re targeting costs, which costs exactly? Are you funding incompetence, inefficiency, and incapacity?” he asked. “It’s like producing toothpaste that hurts your mouth and insisting customers keep paying more to help improve its quality.”
Caution Over GDP Rebasing
Beyond power sector concerns, MAN also weighed in on Nigeria’s planned GDP rebasing exercise, expressing support for an accurate economic assessment while cautioning against potential manipulation.
Ajayi-Kadir acknowledged the importance of recalibrating GDP calculations but warned against including illicit activities such as smuggling and kidnapping, which he said could distort economic realities and serve as a political tool to mask underperformance.
“Rebasing is necessary to correctly value the economy, but it must be done with integrity,” he said. “It should not be weaponised to obscure the depth of Nigeria’s economic challenges.”
MAN pledged to collaborate with the National Bureau of Statistics to ensure the credibility of the rebasing process, stressing that accurate data is critical for informed policymaking.
“We are already working with them. Data is king,” Ajayi-Kadir asserted. “As the saying goes, ‘In God we trust; every other person must bring data.’”
The Fight for Economic Viability
MAN’s call for urgent intervention reflects broader concerns within Nigeria’s industrial sector. With power costs spiralling and economic reforms at risk of political distortion, the association insists that meaningful dialogue and credible data are essential to fostering a sustainable manufacturing environment.
“Nigeria must ensure that the rebasing exercise reflects reality and does not simply dress us in garments we do not merit,” Ajayi-Kadir concluded.
As manufacturers brace for further economic headwinds, the pressure mounts on the government to engage in more transparent and accountable policymaking—before Nigeria’s industrial base suffers further decline.
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