Nigerians Will Pay More For Products If Hike In Electricity Tariff Is Implemented –Honeywell CIO

Ahead of the July 1, scheduled for the nationwide 40 percent increase in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC), Honeywell Group has said that Nigerians will pay more for their various products.

Honeywell Group Chief Investment Officer, Otu Hughes during an interview on Arise TV monitored by THE WHISTLER on Friday, said the company has been operating at a higher cost (diesel) against what the estimated cost of the 40 percent tariff will be.

He said, “In the power sector, we understand what the tariff not being cost-effective can do to the underdevelopment of the state. On the one hand, it’s good news that the government is moving in that direction.

“We just have to keep in mind that lots of manufacturers in businesses have been operating at a higher cost than what the new cost-effective tariff is going to be. It is going to be positive because it’s one of the things we need in this country.

“However, it will be heated on the average Nigerian, so the government has to create several palliatives that will caution against the drastic effect of the tariffs.”

Hughes revealed that running a business on electricity will be more economical compared to diesel and Compressed Natural Gas (CNG).

He noted that the benefit will be more, once the harsh effect of the tariff is felt across all levels of production.

He also hinted that the liberalization of the exchange rate and the unification of the naira will open things up for investment.

According to the CIO, “It will take a bit of time for the currency to stabilize, and to achieve this, we need enough of the volume of foreign currency coming into the system and for stabilization to take place, because stabilization is what attracts capital to a country.”

He also added that the unification of the naira is a bold step that will increase the domestic reserve of the country in terms of tourism.