- Wednesday, May 8, 2024
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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 N1.14 trillion.
Oseni said this was in
furtherance of the Federal Government’s realignment of the subsidy regime.
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