The President of the Abuja Chamber of Commerce and Industry, ACCI, Mr. Emeka Obegolu, has voiced concern over the recent hike in electricity tariffs, cautioning that it could have adverse effects on the ease of doing business in Nigeria.
Speaking to the News Agency of Nigeria, NAN, in Abuja on Saturday, Obegolu emphasized that the increase in tariffs would notably impact businesses across various sectors of the economy.
Acknowledging the existing challenges faced by entrepreneurs and investors in the country, Obegolu expressed particular worry about the potential impact on Small and Medium Enterprises, SMEs, which play a vital role in Nigeria’s economy.
“The ease of doing business is a critical factor for fostering economic growth, attracting investments, and creating job opportunities.
“Regrettably, the increase in electricity tariffs can hinder these efforts by imposing additional financial burdens on businesses, especially SMEs, which are the backbone of our economy”, he said.
Highlighting the importance of electricity in businesses, Obegolu said that any disruptions or cost increases associated with electricity supply could lead to higher operational expenses.
The president said it would hinder businesses’ ability to invest in innovation and expansion and impede their competitiveness in both domestic and international markets.
He also expressed concern that the tariff hike, combined with other economic challenges such as the removal of fuel subsidy and foreign exchange unification, could further compound difficulties faced by businesses.
READ ALSO: Federal Government warns Nigerians to anticipate more electricity tariff hikes
Obegolu urged the relevant authorities to reconsider the tariff increase and explore alternative solutions that prioritise the needs of businesses.
Obegolu urged authorities to reconsider the tariff increase and find alternative solutions that prioritize business needs.
“Many enterprises are already facing challenges like reduced demand, supply chain disruptions, and financial constraints. Higher electricity tariffs add to their struggles and put their long-term survival at risk.
“As advocates for the business community, we call on authorities to rethink this decision and explore other options that support businesses and make doing business easier.
“We need to strike a balance between ensuring a sustainable energy sector and easing the burden on businesses, especially during these difficult times,” he explained.
Obegolu emphasized the importance of dialogue with stakeholders, including business associations like ACCI, to find collaborative solutions that address concerns from both energy providers and businesses.
“By fostering open communication, transparency, and business-friendly policies, we can create an environment that supports economic growth and prosperity for all.
“ACCI is ready to work with stakeholders to tackle the challenges posed by the tariff increase,” Obegolu concluded.
Credible news.ng