The Federal Government of Nigeria has announced plans to review electricity tariffs for Band B and C customers to address disparities in the current billing system and encourage investment in the power sector.
Minister of Power, Adebayo Adelabu, disclosed this at the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan on Thursday in Abuja.
He said the slow pace of migration to Band A customers is largely due to the reluctance of electricity Distribution Companies (DisCos) to make necessary infrastructure investments.
Under the current tariff structure, B and B customers, who receive 17–18 hours of electricity daily, pay ₦63 per kilowatt-hour, Band A customers, who receive just two hours more supply, pay ₦209 per kilowatt-hour.
Describing this pricing disparity as “unfair,” the minister emphasized the need for a more balanced and equitable billing system. Tariff Structure Under Review
Adelabu assured Nigerians that the government is not planning an outright tariff hike but will review the existing pricing model to ensure fairness.
The minister accused DisCos of failing to invest in infrastructure upgrades, which has hindered faster migration of lower-band customers into Band A.
“A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A. It is taking a lot of time because the DisCos refuse to invest,” he stated.
