Impact of Estimated Billings on Small and Medium-Scale Businesses in Akwa Ibom State, Nigeria

Several small and medium-scale business operators in Akwa Ibom State still face major challenges due to unreliable power supply and excessive estimated billing practices. These challenges persist despite the privatisation of Nigeria’s power sector, which was designed to improve efficiency, accountability and overall service delivery. Consequently, many businesses struggle to remain operational, while a considerable number have either relocated or indefinitely closed down. This study examined the impact of estimated billings under Nigeria’s privatised power sector on small and medium-scale businesses in Akwa Ibom State. The study was anchored on the theory of capitalism, adopted a descriptive survey design, and 122 participants were selected using a combination of purposive, stratified, convenient and cluster sampling techniques. Data were gathered through focus group discussions and in-depth interviews, and were analysed thematically. The results indicated that the majority of small and medium-scale business operators expressed strong dissatisfaction with inconsistent electricity supply and outrageous estimated billings. These challenges were found to stifle business growth, increase operating costs and erode trust in the electricity distribution company. To promote more equitable and transparent electricity charges that support entrepreneurship, job creation, poverty reduction, income generation, improved standards of living and overall economic development, the study recommends the elimination of estimated billings for small and medium scale business operators and immediate implementation of prepared meters for electricity consumers.