Manufacturers decry high electricity tariff

The Manufacturers Association of Nigeria (MAN), Kano and Jigawa state Branches, have decried what they called high electricity tariff the electricity distribution company (DisCo) was charging manufacturers.
The complaint was contained in a statement jointly signed by the chairmen of the branches, Alhaji Kabiru Musa and Sani Hussaini, respectively, which they issued in Kano, on Monday.
“We will like to categorically state that, there is a disparity in the electricity tariff between Kano and Lagos.
“Manufacturers in Kano, Jigawa and other places, now pay about N13.00 per (KWA), which is higher than the electricity tariff in Lagos.
“That has resulted in increasing cost of production by manufacturers in the Kano axis above Lagos,” it said.
The statement also pointed out that the industrial sector was paying higher tariff than commercial and residential consumers, saying that the practice was likely to affect the government efforts at diversifying the economy from oil to manufacturing and other sectors.
“The government should unify the tariffs all over the country to balance the competitiveness among manufacturers.
Or, it should create an Electricity Equalization Fund, as in the petroleum sector, which makes the price of PMS to be the same all over the country,” it added.
When contacted, the Head of Corporate Communications, Kano Distribution Company (KEDCO), Mr Ibrahim Shawai, said that MAN was one of their priority customers.
“Their well-being and competitiveness, boosts economic activities and provide jobs to thousands of people across KEDCO’s license area.
“KEDCO has been trying its best to rationalize tariffs for industries in its area, having realized the critical aspect of the cost of electricity to industries.
“We have been interfacing with the Federal Government to bring about a change in this tariff anomaly by reducing the level of cross-subsidy and increasing the supply of power to customers,” he said.
He explained that KEDCO now received an average of 240 MW for distribution to its customers.
Shawai noted that efforts were on to upgrade the Transmission Company of Nigeria’s (TCN) facilities and transmission lines to improve power supply, which would boost KEDCO’s downstream distribution network between 2022 and 2023.
“Customers will not only see a massive improvement in electricity supply, but also feel the economic benefits of a much lower tariff,” Shawai assured.