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Concerns Over Electricity Tariff Increase: LCCI Warns of Impending Job Loss and Intensified Inflation

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Warning of dire consequences, the Lagos Chamber of Commerce and Industry has expressed concerns that the recent electricity tariff hike in Nigeria could lead to significant job losses and exacerbate inflation levels.

In response to the new electricity tariff adjustment, LCCI President Gabriel Idahosa issued a statement on Wednesday highlighting the potential outcomes.

Approved by the Nigerian Electricity Regulatory Commission, the increase sets the new electricity tariff at N225 per Kilowatt for customers in Band A residing in urban areas, marking a substantial jump from the previous rate of N68 per Kilowatt.

Idahosa emphasized that one of the immediate repercussions would be the possibility of companies downsizing their workforce, implementing cost-cutting measures, and raising prices of goods and services.

He urged businesses to reassess their operational costs and evaluate the impact on their profitability, indicating that tough decisions may need to be made, such as reducing operations and laying off employees.

Discussing potential scenarios, Idahosa mentioned that companies might opt for part-time, offsite, and outsourced employment rather than hiring full-time workers, resulting in job losses across various categories.

This move to increase electricity tariffs comes amidst ongoing challenges faced by citizens due to inconsistent power supply in the country since January 2024.

In a related development, last year, President Bola Ahmed Tinubu’s administration eliminated fuel subsidies, leading to a spike in fuel prices and subsequent economic hardships.

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