Business
Small-scale businesses will face challenges due to electricity tariff hike
The Abuja Chamber of Commerce and Industry (ACCI) has expressed concern over the recent increase in electricity tariffs in Nigeria, stating that it will have a negative impact on small-scale businesses and other enterprises.
The Nigerian Electricity Regulatory Commission (NERC) approved the tariff increase for Band A customers who receive at least 20 hours of power supply.
ACCI’s president, Emeka Obegolu, emphasized that this hike will significantly affect businesses across various sectors of the economy.
He acknowledged the existing challenges faced by entrepreneurs and investors and highlighted that small and medium enterprises (SMEs), which play a crucial role in the economy, will be particularly affected by the tariff increase.
Emeka Obegolu stressed the importance of a conducive business environment for economic growth, attracting investments, and creating job opportunities.
He expressed regret that the increase in electricity tariffs will hinder these efforts by imposing additional financial burdens on businesses, especially SMEs, which are the backbone of the economy.
The Abuja Chamber of Commerce and Industry is not alone in its opposition to the tariff hike.
The Trade Union Congress, Nigeria Labour Congress, Lagos Chambers of Commerce, Centre for the Promotion of Private Enterprises, and other organizations have also voiced their concerns.
However, the Nigerian Government has defended the tariff increase, stating that it will save the country 52% of electricity subsidy and that 85% of electricity customers will still receive subsidies.
