The proposed abrogation of Eligibility Consumer Scheme regulation by the Electricity Distribution Companies (DisCos) in Nigeria has been described as scandalous, counterproductive and an action that makes the government look insincere in its ease of doing business.
Daily News 24 reports that Eligibility Consumer Scheme is an initiative that allows Manufacturers to purchase electricity in bulk at a lower rate so as to reduce the cost of production.
The Director-General of the Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi Kadiri, stated this during an interview with journalists on Wednesday.
The MAN DG noted that the manufacturing sector is currently facing many challenges that are very difficult to surmount, which are partly caused by global and environmental reasons.
Ajayi Kadiri urged the government to rethink its numerous campaign promises of planning to lift people from poverty. Therefore, this move will be counter-productive, especially when you have industries that have invested far more than what these DISCOs have contributed nothing to the economy.
“The total numbers of people working in DISCOs all-put-together are not up to the total numbers of the people working in KAMWIRE Industries. DISCOs are only our to make cheap monies for the Nigerian populace, especially from Manufacturers. You will agree with me that all our members who can access this scheme are doing very well in their investments process and can provide more employment to the masses.
“The process cancellation is therefore unreasonable and unacceptable, and surprisingly, they are seeking the support of other government agencies. It is going to result in the downsizing of industries, high cost of inputs and increase in the cost of goods in the society especially at this critical moment when the disposable income of an average Nigerian dwindles.”
The MAN boss further stressed that “DISCOs have always been frustrating manufacturers that is why not more than five of our members benefit from the scheme at the moment. Power has continued to be the major factor in the industrialisation process of nay nation.
“I shall be grossly disappointed if this later come true, God forbid that the information is true. It will also affect our long waiting plans for the AfCTA, making us at a very disadvantaged angle if the cost of power supply is high, which means everything will be difficult. We can compete with other African Countries under AfCTA with a high-cost profile.
“How sensible it is that you allow a group of people, whose investments all together are not up to an investment of a single company in the manufacturing sector, to decide how they do their business was?
“I hope this is not true because if it happens to be true, then it must be reversed with immediate effect because we can subject our members to hardship”, .he said
