Electricity tariff hike will affect ease of doing business, says ACCI

The Abuja Chamber of Commerce and Industry (ACCI) says the recent hike in electricity tariffs could impact negatively on the ease of doing business in Nigeria.

Emeka Obegolu, ACCI’s president, spoke in an interview with NAN on Saturday in Abuja.

Obegolu acknowledged the various challenges already faced by entrepreneurs and investors in the country.

He said small and medium enterprises (SMEs), which are crucial to the country’s economy, would be greatly affected by the hike in tariff.

“The ease of doing business is a critical factor for fostering economic growth, attracting investments, and creating job opportunities,” he said.

“Regrettably, the increase in electricity tariffs can hinder these efforts by imposing additional financial burdens on businesses, especially SMEs, which are the backbone of our economy.”

According to Obegolu, any disruptions or cost increases associated with electricity supply could lead to higher operational expenses.

He said it would hinder businesses’ ability to invest in innovation and expansion and impede their competitiveness in both domestic and international markets.

Obegolu also expressed concern that the tariff hike, combined with other economic challenges such as the removal of fuel subsidy and foreign exchange unification, could further compound difficulties faced by businesses.

“Many enterprises are already struggling with reduced demand, supply chain disruptions, and financial constraints. The burden of higher electricity tariffs exacerbates their challenges and threatens their long-term viability,” he said.

“As advocates for the business community, we urge relevant authorities to reconsider this decision and explore alternative solutions that prioritise the needs of businesses and support ease of doing business.

“It is vital to strike a balance between ensuring a sustainable energy sector and mitigating the adverse effects of tariff hikes on businesses, particularly during these trying times.”

The ACCI president called for constructive dialogue with stakeholders to find collaborative solutions that addressed concerns from both energy providers and businesses.

“Through fostering open communication, promoting transparency, and adopting policies that facilitate business growth and competitiveness, we can create an environment conducive to sustainable economic development and prosperity for all,” he said.

Obegolu said ACCI stands ready to collaborate with stakeholders to address challenges posed by the tariff.