The Manufacturers Association of Nigeria, has rejected varying cost of electricity tariff across different states in the country.
In a statement issued by , President, Manufacturers Association of Nigeria, Mansur Ahmed, on Friday, the disparity in electricity tariff had been observed to favour some regions of the country over others.
Ahmed noted that the tariff differences, which is about 25 per cent, was causing unfair competition among manufacturers.
“Most worrisome is the fact that manufacturers who are made to pay higher tariffs sell their products in the same market and cannot afford resultant effects of wider gap in the prices of products as competitors in the industry,” he said.
The MAN therefore called on the Federal Government to prevail on the electricity distribution companies to regularise the varying cost of electricity tariff across different states in order to create a level playing ground for manufacturers.
According to Ahmed, the resultant effect of the tariff differential is that manufacturers under the Discos with higher tariff rate sell at a loss in order to sustain their market shares.
He warned that if action was not taken urgently, the affected manufacturers might be forced to close down with looming adverse effect on employment and the economy.
He recommended that in the event where the disparity had to be maintained due to the difference in commercial activities, the government could intervene.
Ahmed suggested the establishment of an equalisation fund as provided in the petroleum sector to support Discos with smaller number of customers in order to ensure uniformity in tariff across the country.
Ahmed noted that the inadequacy of electricity supply had been one of the major challenges hindering the competitiveness of manufacturing sector in the country.