3 January 2013

Nigeria: Poor Power Supply Hikes Cost of Business to 40 Percent NACCIMA

Lagos — Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA) says epileptic power supply by the Power Holding Company of Nigeria (PHCN) has increased the cost of doing business in the country to 40 percent.

President of NACCIMA, Dr. Herbert Ajayi, who disclosed this in Lagos, expressed concern that the recent increase in electricity tariff has not translated to improved power supply.

He said: "Presently, we are worried that in spite of the recent high tariff charged by the PHCN, electricity supply is yet to reduce the burden of private generators for businesses and the citizens since the government's intention to meet the 6,000MW to 10,000MW has been difficult.

"This has contributed as always to the high cost of doing business estimated at about 40 percent since real sector operators and citizens alike depend mostly on own provision of alternative sources of electricity through own generating plants."

He called on the federal government to cooperate with private sector with a view to delivering 10,000MW by the end of this year, as well as make provisions for sufficient pre-paid meters to consumers to ensure that every citizen pays his bill timely.

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