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From Romanus Ugwu, Abuja
Tinubu Media Support Group (TMSG) has claimed that the new electricity tariff adopted by the federal government will favour manufacturers, and reduce the cost of production.
The group also noted that the public outrage over the removal of electricity subsidies for 15 per cent of consumers is unnecessary, saying that the majority of Nigerians will continue to benefit from subsidies.
It condemned the attempt to muddle government policy by claiming that the price increase for electricity consumers in the Band A category affects all consumers.
In a statement signed by its Chairman, Jesutega Onokpasa, the group claimed that President Bola Tinubu deserves credit for signing off on an action that shielded 85 per cent of electricity consumers from tariff hikes while also paving the way for improved power supply in the medium and long term.
The pro-democracy group also dismissed claims that the new tariff for premium electricity consumers would affect productivity in the case of manufacturers.
“In our view, the essence of the tariff adjustment is to provide that category of consumers more power, reduce their dependence on diesel-powered generators, and reduce their cost of production. This is one way to grow the economy.
“So we are convinced that those claiming that manufacturers will pass on the extra cost to the consumer are being mischievous. What they are getting is a reduction in the cost of production, so the consumer should even be expecting lower prices instead.
“We see it as a win-win for manufacturers and citizens. You cannot make an omelette without breaking eggs, so providing a steady power supply is key to the improved production capacity of industries. Improved productive capacity is beneficial to the citizens. So, it benefits all.
“We make bold to say that not one major manufacturer or big industry player, including their umbrella body, the Manufacturers Association of Nigeria (MAN), have complained over the matter. They know that for them, it will amount to a reduction in the cost of production,” TMSG explained.
Reacting further, the support group noted: “We have seen how some individuals and groups have been jostling for media space to dish out misinformation on the recent tariff adjustment announced by the National Electricity Regulatory Commission (NERC) and felt the need to join the fray in order to debunk the lies.
“So much has been said about the price increase from N66 kilowatt per KW/h to N225 for consumers in Band A who enjoy 20+ hours of electricity supply daily but surprisingly it’s being made to look like a general hike in tariff.
“While it is true that the last tariff hike in Nigeria was in 2020, the distribution companies DisCos have been angling for what they described as cost-reflective tariff to help businesses recover costs and boost investment but it is to the credit of President Tinubu that what we have is a price adjustment that affects only consumers enjoying about 40 per cent of distributed power.
“In addition, out of 800 feeders on Band A, 300 were removed. These are mostly those meant for residences. So, in effect, ordinary electricity consumers will experience no increase outside of consumers in Band B, C, D, and E. Also, those that will experience an increase will receive benefits of lower rates than the alternative power sources they were using,” the group said.
