Taiwo Hassan 
Following Federal Government’s decision to remove subsidy on electricity supply and subsequent introduction of higher tariff, the Lagos Chamber of Commerce and Industry (LCCI) has expressed concern over the development, saying businesses might pay heavily for services not enjoyed.
The LCCI, therefore, called for an aggressive metering programme designed to achieve 100 percent coverage of electricity consumers. The move, according to the chamber, guarantees liquidity for the distribution companies and gives more satisfaction to consumers with a feeling of paying for what they consume.
Director-General of LCCI, Dr. Chinyere Almona, who stated this in a chat with New Telegraph in Lagos, said the chamber acknowledged that the removal of subsidy on electricity supply may have been in line with attracting more investors into the sector. In addition, she explained that the LCCI had also advocated that the government too should subsidise production instead of consumption.
Almona explained: “We acknowledge that the removal of subsidy on electricity supply may have been in line with attracting more investors into the sector with a cost reflective tariff. “We have also advocated that we subsidise production instead of consumption.
However, our major concern is seeing businesses pay heavily for the services that they do not enjoy optimally. “It is a grave concern that with a higher cost of power, companies are still not having access to the service at the promised levels and quality. “We call for an aggressive metering programme designed to achieve 100 percent coverage of electricity consumers.
This guarantees liquidity for the distribution companies and gives more satisfaction to consumers with a feeling of paying for what they consume. “Beyond the provision of infrastructure, we need to have a sound regulatory and policy environment to attract more investment into the power sector.”
The renowned economist stressed: “Creating the enabling environment to attract foreign investors to build renewable energy factories in Nigeria to upscale our energy transition and reduce our dependence on the national hydro grid which has continued to crash at close intervals in recent months should be a major strategic goal for the federal and state governments.
“We urge deep commitment to the Presidential Metering Initiatives’ target of installing about two million meters annually over the next five years. “We expect the Federal Government to show more commitment to patronising local meter manufacturers to boost local content development and foster growth in the power sector.
“Since states now have control of their electricity markets, we expect them to launch similar metering initiatives.” While speaking on the adverse effects of the new electricity tariff on Nigerian businesses, she said: “What is most worrisome with the Nigerian case is the fact that the electricity to be supplied is not adequate.
“Also, the increase is coming on the heels of macroeconomic instability, infrastructure deficits, as well as other supply side constraints limiting the performance of the productive sector. “Truth be told, over 65 per cent of private businesses, especially manufacturing concerns and SMIs, may be forced to close down due to the high electricity tariff.”
