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LCCI decries poor supply to industries
- MAN says poor supply affects market competition
The Lagos Chamber of Commerce and Industry (LCCI) has decried the rising cost of electricity and its impact on businesses. The Director-General LCCI, Dr Muda Yusuf says, the high electricity tariffs presents a challenging situation to several businesses. He stated that sustainability, sales and profitability have been largely impacted by the high tariff costs.
Nigeria’s largest private-sector group, the Lagos Chamber of Commerce and Industry (LCCI), warned that the high energy cost would have a back-breaking and negative impact on businesses already grappling with intense inflationary pressures, exchange rate depreciation, high cost of funds and weak purchasing power. He called on stakeholders to find a solution to the worsening situation.
”It’s worthy of note that the issue of electricity is germane to any business, especially when the government source is epileptic, making it very expensive for Small and Medium Enterprises (SMEs) to sustain themselves. For the multinationals and other businesses, the bottom line is affected”, he said.
The Manufacturers Association of Nigeria (MAN) have also lamented the impact of poor supply on the manufacturing industry. Speaking on the sector, President MAN, Mansur Ahmed, said the impact of poor supply affects market competition as electricity accounts for up to 38% of the cost of production.
Experts have called on stakeholders and the government to encourage investments in the sector and drive transparency in the revenue process.