Power distribution companies (DisCos) in Nigeria are about to lose billions of Naira as manufacturers insist on paying the old tariff of ₦66/kWh.
The tariff for manufacturers was increased from ₦66/kWh to ₦208/kWh, and this forced the Manufacturers Association of Nigeria (MAN) to lodge a petition with the Nigerian Electricity Regulatory Commission (NERC), urging a reversal of the new electricity rate for its members.
Due to the economic challenges faced by manufacturers and business owners in the country, the association argued that the increased electricity tariffs would further exacerbate the difficulty of conducting business in the nation.
The Power distribution companies (Disco) are reportedly contemplating widespread disconnections of several companies and factories, fearing substantial losses estimates in billions of naira.
NERC reported that they approved the new tariff due to financial liquidity issues and the increasing losses incurred by the DisCos, which result from the absence of a cost-reflective tariff within the power sector
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