In a move aimed at addressing long-standing disparities in electricity billing, the Federal Government has announced plans to review electricity tariffs for customers in Bands B and C. The initiative, led by the Minister of Power, Adebayo Adelabu, seeks to create a more balanced and equitable pricing system while encouraging investment in Nigeria’s power sector.
The Current Tariff System: A Tale of Disparity
Under the existing billing structure, customers in Band B enjoy 16 to 18 hours of electricity supply daily and are charged ₦63 per kilowatt-hour (kWh). In contrast, Band A customers, who receive only two additional hours of power (18 to 20 hours), pay a significantly higher rate of ₦209 per kWh.
This wide gap in pricing has been described as “unfair” by Minister Adelabu, who emphasized the need for a more just and balanced approach. “The gap between the Band A tariffs and Bands B, C, D, and E is just too wide. We believe it’s not fair. It is not just, and we must be able to carry out some level of regularization,” he stated.
A Push for Equity and Investment
The proposed review is part of broader efforts to address inefficiencies in the power sector and attract much-needed investment. Adelabu made the announcement during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja on Thursday, February 27, 2025.
He clarified that the review does not necessarily mean an increase in tariffs. “We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted,” he said. Instead, the goal is to create a pricing system that reflects the actual cost of electricity while ensuring affordability for consumers.
Revamping Nigeria’s Power Infrastructure
The minister also highlighted the need to invest in revamping Nigeria’s dilapidated power infrastructure. A more balanced tariff system, he argued, would generate the revenue needed to upgrade facilities and improve service delivery across the country.
“We are going to look at it and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but also to ensure that we can invest more in revamping all these dilapidated infrastructures,” Adelabu explained.
What This Means for Consumers
For customers in Bands B and C, the review could mean a more equitable distribution of electricity costs. While the exact details of the new tariff structure are yet to be unveiled, the government’s commitment to fairness and transparency is a step in the right direction.
The move is also expected to boost investor confidence in the power sector, paving the way for improved infrastructure and more reliable electricity supply in the long term.
Key Takeaways
The Nigerian government plans to review electricity tariffs for Bands B and C to address pricing disparities.
Band B customers currently pay ₦63/kWh, while Band A customers pay ₦209/kWh for just two additional hours of supply.
Minister Adelabu described the current system as “unfair” and emphasized the need for a balanced and equitable pricing structure.
The review aims to encourage investment in the power sector and revamp dilapidated infrastructure.
The government assures that the review does not necessarily mean a tariff increase.
