Increase in Electricity Tariff: Hotel Owners May Go Poorer

Mr Jijiwon Akpovwovwo, the acting National Secretary, Nigerian Hotels Association, has on Tuesday addressed the News Agency of Nigeria (NAN) in Kaduna over the increase in Electricity Tariff and how it impacts on hotel business in Nigeria. He said that 45 percent of the revenue generated by hotel owners in Nigeria is utilised in paying electricity bills.

Akpovwovwo noted that charges on the power supply are the second highest expenditure after salaries and wages. As a result, running hotel business in the country is increasingly becoming counterproductive.

He said that hotel owners incur huge expenditure even before the recent increase in electricity tariff commenced; however, that further increase in it will only make operators of hotel poorer.

Akpovwovwo therefore commended the National Assembly and labour unions for opposing the increase in tariff noting that electricity is a major component for the development of any nation; and also for the sector to grow, the government must mitigate the effect of this hike. He said that the tariff should be reviewed downward to save critical sectors of the economy including the tourism from collapse.

“In advanced countries, it is abnormal to see businesses spending as high as 40 percent of their expenditure on electricity. The hotel business is capital-intensive so government must support it by creating conducive atmosphere for it to thrive” he noted.

However, Nigeria Labour Congress (NLC) has urged DISCO or GENCO operating in the country to immediately effect the directive of the NASS on tariff reduction or should honourably surrender it’s possessory and proprietary rights to the government if they do not have the requisite capacity.

The Congress in a statement by its president, Ayuba Wabba said while it is ready to submit itself to the ongoing intervention process at the NASS, it will not allow anyone to take the people of this country for a ride anymore