The Ibadan Electricity Distribution Company (IBEDC) has introduced a new policy requiring prepaid customers to recharge a minimum of N5,000, a move that could significantly impact Micro, Small, and Medium Enterprises (MSMEs) within its coverage area.
The benchmark policy has left many struggling to meet the recharge requirement. While some businesses have resorted to borrowing funds to maintain electricity supply, others are forced to halt operations due to lack of power, threatening their survival.
According to IBEDC’s public notice, “Users on Band A are now required to make a minimum recharge purchase of N5,000. Users in other bands must make a minimum purchase of N2,000. Kindly note that this new payment structure is effective already and applies exclusively to IBEDC customers.”
This policy is unique to IBEDC, as other electricity distribution companies have denied implementing similar benchmarks. However, MSMEs reliant on electricity for their daily operations are particularly vulnerable. Many are already struggling with high electricity tariffs under Band A and now face additional financial pressure to meet this recharge threshold.
For small businesses like tailors, barbers, and welders, electricity is a critical resource. The inability to recharge in smaller amounts could force them to scale back operations or explore costly alternatives such as generators or solar energy.
This development raises concerns about the sustainability of MSMEs in IBEDC’s jurisdiction. With limited resources, many small business owners might find it difficult to remain competitive or even stay operational in the face of these challenges.
