BY TIMOTHY AGBOR, OSOGBO
Manufacturers and firms managers in Osun State are currently grieving over what they termed as the outrageous billing by the Ibadan Electricity Distribution Company, saying that the development has negatively imparted their ventures and livelihood.
In separate interviews with The Point, some industrialists in the state disclosed that many of their colleagues had shut down their businesses as a result of the inabilities to cope with the ‘crazy electricity billings’ by the IBEDC and the spiraling cost of raw materials as a result of inflation.
The Chief Executive Officer of Rympa Industry, Osogbo, manufacturers of palm kernel oil, Mufutau Olanite, said that his factory was at the verge collapse due to the huge electricity billings.
He claimed that his factory was billed N20, 000 per month for electricity despite the challenges of fixing the faults on his production line.
Olanite said, “It has not really been easy, I must be frank with you. We hardly make profit on our products. For instance, to grind one ton of palm kernel (1,000kg) and turn it to oil, we would be charged about N6, 000 on electricity. IBEDC gives estimated bills.
“Many of the companies in the state have folded up. I no longer produce. In the meantime, I have teamed up with one of my colleagues. The production line in my factory has collapsed.”
Ajibola Olaide, Managing Director, Mazota Nigeria, a printing press, described the electricity tariff by the power distribution company as outrageous, saying that those still in business were forced to increase the prices of their products and services.
Olaide, who claimed that he pays average of N100, 000 monthly on electricity alone, lamented the huge cost of doing business in the country.
He said, “It (electricity cost) has been very outrageous and stifling but since we are not the only one being affected, the best thing is to adapt. We complained but no one seemed to listen to us. We used to pay about N60, 000 every month but now, we are paying about N100, 000.
“Our clients have been bearing the brunt because we increased the costs of products and services. Once the cost of production rises, there will be increase in cost of products and services. As you know, no manufacturer can just wake up one day and increase the cost of products.
“Some of our members are already out of business due to high cost of electricity and raw materials.”
