The Organised Private Sector (OPS) has issued a dire warning that over 65 percent of private businesses in Nigeria may be on the brink of closure due to the recent electricity tariff hike. In a statement released to Media Talk Africa on Wednesday, OPS highlighted the challenges faced by businesses in the country, including macroeconomic instability, infrastructure deficits, and other supply-side constraints that are hindering the productivity of the sector.

The Nigerian Electricity Regulatory Commission approved a staggering 245 percent increase in electricity tariffs for band A customers on April 3, promising at least 20 hours of power supply. However, OPS has expressed concerns that this hike will have devastating consequences for the economy and the average Nigerian.

According to OPS, the tariff increase will not only exacerbate inflation and put further strain on the disposable income of Nigerians but will also lead to the closure of many private businesses. This, in turn, will escalate the already high levels of unemployment and insecurity in the country.

Despite the tariff hike, OPS noted that inadequate power supply continues to plague the nation, further compounding the challenges faced by businesses and households alike. The group called on the federal government to reconsider the tariff hike in order to prevent a catastrophic downturn in the productive sector of the economy.

The call for action from OPS echoes the sentiments of other organizations, including the Nigeria Labour Congress and the Trade Union Congress, who have also demanded a reversal of the tariff hike. It is clear that the current situation is unsustainable, and urgent measures must be taken to address the pressing issues facing the Nigerian economy.

In light of these developments, it is imperative that the government takes decisive action to support businesses and ensure the well-being of its citizens. The future of Nigeria’s economy hangs in the balance, and only through collaborative efforts and strategic interventions can we hope to overcome these challenges and build a more prosperous future for all.