MAN frowns at Discos disconnection of member’s facilities, urges FG’s intervention
The Manufacturers Association of Nigeria (MAN) has appealed to the Federal Government to intervene into the tariffs dispute between it and the electricity Distribution Companies of Nigeria (DisCos).
President MAN, Otunba Francis Meshioye made the appeal in his Welcome Address at the 4th Adeola Odutola Lecture and Presidential Luncheon that took place at the Lagos Oriental Hotel, Lekki, Lagos, noting that the group frowned at the disconnection of facilities of members of the association by the DisCos despite court order prohibiting them from doing so.
Meshioye stated that the theme “The Imperatives of an Intentional Development of the Nigerian Manufacturing Sector” was carefully thought out and crafted in the face of the numerous challenges affecting the manufacturing industries.
Meshioye highlighted that MAN would continue to seek the intervention of the government to resuscitate ailing industries and restore investor’s confidence in the manufacturing sector.
He affirmed that high energy costs and frequent hike in electricity tariffs as bane of the manufacturing sector, adding that the arbitrary hike in electricity tariffs is highly worrisome.
“It is unfortunate that the Distribution companies (DisCos) persistently disconnected manufacturing facilities from the national electricity grid, despite payment of current electricity charges on existing tariff, and against court injunction prohibiting them.
“We have consistently maintained that manufacturers will struggle without rate above 100% increment in the electricity tariffs.
“Electricity costs alone accounted for more than 35% of an average manufacturer’s cost structure,” he emphasized.
Meshioye urged the government to intervene in the electricity tariffs issue for the manufacturers in order for the sector to thrive.
The president of MAN also strongly advocated for government recategorization of manufacturers as strategic users of gas and increase gas supply.
Meshioye further acknowledged other challenges facing the manufacturing sector to be both internal and external, stressing that the eternal challenges include the continued geopolitical risks and uncertainty, the escalating trade wars, and the recent global protectionist policies, such as changes in tariffs and quotas restricting international trade flows.
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