The Association of Table Water Producers of Nigeria, ATWAP, Ogun Chapter, has expressed concern over the recent 300% increase in electricity tariffs approved by the Nigerian Electricity Regulatory Commission, NERC.

Babatunde Lawal, the state Chairman of ATWAP, highlighted the detrimental impact this hike would have on the cost of production. He emphasized the crucial role electricity plays in the development of the economy, particularly in the table water production industry where it accounts for approximately 30% of the production requirements.

Lawal pointed out that such a significant increase in tariffs would inevitably lead to higher expenses, especially if it translates to improved electricity availability. This would further strain businesses that are already grappling with the high costs of diesel and petrol.

The ripple effect of this tariff hike would ultimately be felt by consumers, who may end up paying more for products due to increased production costs. This could potentially result in reduced purchasing power and lower consumer demand.

In light of these challenges, Lawal urged the Federal Government to provide financial support to businesses in the form of loans to help offset the impact of the tariff hike. He also stressed the importance of businesses reassessing their strategies to navigate through these difficult times.

The Vice Chairman of NERC, Musliu Oseni, recently announced the approval of the new tariffs, stating that subsidies for the upcoming fiscal year are expected to decrease by approximately NGN1.14 trillion as part of the government’s subsidy realignment efforts.

As businesses in Nigeria brace themselves for the financial implications of this tariff increase, it is clear that proactive measures and government support will be essential in ensuring the sustainability of the manufacturing sector in the country.