Toba Owojaiye reporting
Abuja, Nigeria
Nigerian manufacturing sector is sinking deeper into crisis as rising energy costs, exacerbated by sharp increases in petrol prices and electricity tariffs, threaten its survival. Despite efforts by the Manufacturers Association of Nigeria (MAN) to challenge the recent electricity tariff hike, the Federal High Court struck down their case on October 7, 2024, ruling it premature and lacking in legal foundation.
Truth Live News gathered that MAN had decried the increase in electricity tariffs, which jumped from N66/kWh to N209/kWh for Band A consumers, as discriminatory and harmful to the sector’s growth. Their legal battle was aimed at reversing these hikes, which they argued were implemented without following proper regulatory procedures. Unfortunately for the manufacturers, the court found that MAN had not exhausted the dispute resolution mechanisms laid out in the Electricity Act, leaving the sector to grapple with steep production costs.
This legal loss paints a grim picture for the industry, which is already burdened by a 430% rise in petrol prices and the exorbitant cost of diesel, said to consume up to 80% of some manufacturers’ profits. MAN’s President, Francis Meshioye, and Director General, Segun Ajayi-Kadir, both expressed deep concerns that the government’s policies are driving the manufacturing industry into collapse, with severe consequences for production, employment, and economic stability.
For the suffering masses, this paints an even more sorrowful note as manufacturing companies are likely to shut down, leading to more job losses, reduced access to goods, and higher prices. The continued strain on manufacturers means the hardship faced by ordinary Nigerians will only deepen, with little respite in sight.