The Institute of Chartered Accountants of Nigeria, ICAN, has called for the deferment of the proposed electricity tariffs hike in the country while urging the federal government to consider additional short-term tax breaks and other incentives to the Electricity Distribution Companies (Discos) as an alternative to the rate hike.
ICAN in a statement by its president, Dr Innocent Okwuosa, said the proposed increase in electricity tariff would further worsen the plight of the masses and push more Nigerians into multidimensional poverty.
“Furthermore, the increase would significantly increase the cost of doing business, particularly for SMEs. These enterprises may be unable to pass on the additional costs to their customers, increasing the risk of business closures, and further worsening the unemployment rate,” he said.
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While identifying some of the reasons adduced by the Discos for the proposed hike to include non-payment of electricity bills by government entities, security challenges, energy theft, and payment apathy as well as changes in market conditions such as fuel prices, generation costs, infrastructure investments, exchange rates, and other factors; ICAN, however, urged Discos to demonstrate better accountability and transparency in governance and reporting.
