The Manufacturers Association of Nigeria (MAN, on Monday, warned against the negative consequences of the proposed increase in tariffs by DisCos.

It further warned that if urgent steps were not taken to halt the proposed tariff hike, it would have a negative effect on the country’s economy.

The Daily Post reports that the distribution company of Nigeria has planned an increased tariff with effect from July 1, 2023.

However, in a statement by the Director General of MAN, Mr. Segun Ajayi-Kadir, he said manufacturers spent at least N144.5bn on sourcing alternative energy in 2022, up from N77.22bn in 2021, which translates to about an 87% increase in the cost of accessing alternative energy sources by manufacturers within a year.

According to the statement, in the last 8 years, the electricity tariff has been increased by 186%, and it was affirmed that the fact that the government itself owed N75 billion in unpaid electricity bills was indicative of how burdensome the cost of electricity had become.

It said the absence of a stable, effective, and fairly priced electricity supply in Nigeria had been a long-standing challenge for manufacturers, adding that the worrisome development had compelled many manufacturing industries to supplement the unreliable electricity supply with alternative energy sources.