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The Manufacturers Association of Nigeria, MAN, Kano/Jigawa branch has raised an alarm that thousands of jobs are at risk of being lost as factories are facing shutdown in the two states.
MAN, in a statement sent to BizPoint on Wednesday, alleged that the Kano Electricity Distribution Company, KEDCO, has threatened to disconnect them by Friday, May 3.
BizPoint gathered that the industrial companies in Kano and Jigawa, the KEDCO’s franchise area had written to the distribution company, rejecting the recent increase in electricity tariff.
Piqued with the manufacturers’ rejection, it was gathered, KEDCO replied to them, asking them to withdraw their rejection letter by Friday or face disconnection.
In the statement, jointly signed by Mohammed Bello Umar and Nura S. Madugu, Chairman Bompai/Jigawa and Sharada Challawa respectively, MAN described the development as unfortunate, saying, “this will definitely lead to the closure of many factories.”
Apparently, according to the manufacturers, all the workers in these factories would be laid-off, “thereby worsening the position of labour market.”
The Association expressed fear that the aftermath of closing down the factories would have a very serious security implications in the state.
“In view of the above, NERC should know that before carrying out this type of review, they must make sure that all the determining factors to all Discos are satisfied not only on paper but also in practice.
“In line with the above, we are requesting the power sector regulator (NERC) to reconsider this discriminatory tariff review and stay within the provisions of the MYTO II Guidelines and Procedures. As such, there is no basis for increase without prior notifying and consultation with the stakeholders.
“We also wish to notify the Federal Government to either do something about this issue or the industrial sector in Kano would be under threat of extinction,” the statement concluded.
When contacted for comment, KEDCO’s spokesman, Sani Bala Sani did not answer the call to his mobile phone and didn’t reply the SMS sent to him as at the time of filing this report
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