The
Lagos Chamber of Commerce and Industry, LCCI, has called on the National
Electricity Regulatory Commission (NERC) to urgently address the growing
concerns over the outrageous bills to consumers.
The
Chamber also called for review of the concept of fixed charges.
In a
parley with the media, the President of LCCI, Alhaji Remi Bello, said there is
need for NERC to urgently address the growing concerns over the outrageous
bills to consumers as most SMEs spend considerable sum on payment for public
power supply, adding that, often, these firms never get the power supply
commensurate to payments made.
“The
power situation is still a major problem for business across all sectors.
Energy cost remains a major threat to business sustainability. Expenditure on
diesel and other fuels continued to increase.
The
power sector privatisation is yet to
make the desired impact. Profit margins of
firms have been adversely affected. Let me again reiterate our position that
the concept of fixed charges should be reviewed as this is an unfair demand on
power consumers.
Payments
should be value driven to be equitable” he said. He noted the Chamber welcomes
a policy thrust that seeks to promote self-reliance in the Nigerian economy
because there is great value in domesticating spending, but notes with concern
that the recent sharp increases in the import tariff and levies on motor
vehicles as this policy has potentially harmful effects on the economy and the
welfare of citizens.
“However,
in pursuit of this laudable aspiration, proper policy sequencing is imperative.
Import dependency is only a manifestation of deeper issues of low productivity
and weak competitiveness.
It
is inappropriate to begin the pursuit for a self-reliant automobile sector with
the imposition of high import tariff on vehicles when there are fundamental
supply side issues to resolve. Without a good foundation, the superstructure
cannot stand” he said.
He
disclosed that the recent tariff review will have negative outcomes for the
economy such as higher transportation costs with corresponding impact on
inflationary conditions in the economy, adding that, this would happen because
over 85 percent of the freight in the economy is moved by road.
Vanguard
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