The Federal Government has announced plans to regularise electricity tariffs for Band B and C customers to improve efficiency and reliability in the power sector.
The Minister of Power, Adebayo Adelabu, revealed this during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja on Thursday.
The event was supported by the UK Foreign, Commonwealth and Development Office and the UK Nigeria Infrastructure Advisory Facility.
Under the current structure, customers in Band B, who receive 17 to 18 hours of electricity daily, pay N63 per kilowatt-hour, while those in Band A, with about 20 to 24 hours of supply, are charged N209 per kilowatt-hour.
Adelabu highlighted that in 2024, the power sector adopted a cost-reflective tariff for about 15 per cent of electricity consumers. Although this figure may seem small, he described it as a step forward.
“It was a pilot and a proof of concept which I believe has worked. The people enjoying 20 to 24 hours of electricity supply daily are happy,” Adelabu said.
“They are satisfied despite paying N209 per kilowatt-hour because they feel they are better off than relying on generators.”
He added that as the government continues to revamp distribution and transmission infrastructure, more customers would be moved to Band A.
According to the minister, the migration of some customers to Band A has led to a 70 per cent growth in the sector’s revenue, rising from N1.05 trillion in 2024 to about N1.7 trillion.
“We will look at the tariff again. I am not saying we are going to increase the tariff, so I should not be misquoted,” Adelabu stated.
“We are going to review the tariff and find ways to build on the modest achievements of 2024, not just to grow sector revenue but also to invest more in revamping the power sector’s aging infrastructure. This will help provide the reliable electricity we envision.”
He acknowledged that the process of moving Band B and C customers to Band A had been slower than expected, blaming the Electricity Distribution Companies (DisCos) for failing to invest adequately in the sector.
“We thought the migration of Band B and C customers would be faster than this, but the DisCos have refused to invest in the power sector,” Adelabu said.
He stressed that substantial investment was necessary to accelerate the transition of lower-band customers to Band A, adding that the regularisation of tariffs for Band B and C customers would proceed gradually.
