The President of Abuja Cahmber of Commerce and Industry (ACCI), Chief Emeka Obegolu, SAN, PhD has expressed deep concern on the recent hike in electricity tariffs and its potential consequences on the ease of doing business in Nigeria.
In his reaction to the recent hike, Chief Obegolu, SAN, PhD said this decision has the potential to significantly impact businesses across various sectors and exacerbate the challenges already faced by entrepreneurs and investors in our country.
“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 could hinder these efforts by imposing additional financial burdens on businesses, especially small and medium enterprises (SMEs), which are the backbone of our economy.”
Chief Obegolu, SAN, PhD, the leader of the Organised Private Sector in FCT stated that electricity is a vital input for businesses, enabling smooth operations, powering machinery, and enhancing productivity adding that any disruptions or cost increases associated with electricity supply can have a ripple effect on production costs, competitiveness, and ultimately, profitability.
“This tariff hike poses the risk of higher operating expenses for businesses, potentially hampering their ability to invest in innovation and expansion, and impeding their competitiveness in both domestic and international markets.”
Accordingto him, the timing of this tariff increase, amidst ongoing economic challenges including the removal of fuel subsidy and foreign exchange unification, further compounds the difficulties faced by businesses.
He also said that many enterprises are already struggling with reduced demand, supply chain disruptions, and financial constraints. The added burden of higher electricity tariffs exacerbates their challenges and threatens their long-term viability.
“As advocates for the business community, we strongly urge the relevant authorities to reconsider this decision and explore alternative solutions that prioritize the needs of businesses and support the ease of doing business in Nigeria. It is vital to strike a balance between ensuring a sustainable energy sector and mitigating the adverse effects of tariff hikes on businesses, particularly during these trying times,” he said.
“We call upon the government to engage in constructive dialogue with stakeholders, including business associations like ours, to find collaborative solutions that address the concerns of both energy providers and businesses. Through fostering open communication, promoting transparency, and adopting policies that facilitate business growth and competitiveness, we can create an environment conducive to sustainable economic development and prosperity for all.”
As a leading business support organization committed to promoting economic development and facilitating trade and investment in the Federal Capital Territory, we stands ready to collaborate with relevant stakeholders to address the challenges posed by the hike in electricity tariffs and champion the interests of businesses in Nigeria.
