The Federal Government has announced plans to standardize electricity tariffs for customers in Bands B, C, and A to enhance efficiency and reliability in the power sector.
Minister of Power, Adebayo Adelabu, disclosed this on Thursday at the Public Presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja.
The initiative was developed with support from the UK Foreign, Commonwealth and Development Office (FCDO) and the UK Nigeria Infrastructure Advisory Facility (UKNIAF).
Currently, Band B customers, who receive between 17 to 18 hours of electricity daily, pay ₦63 per kilowatt-hour, while Band A customers, who get just two extra hours of supply, are charged ₦209 per kilowatt-hour.
Adelabu noted that in 2024, the power sector implemented a cost-reflective tariff for about 15% of consumers, a move he described as a significant step forward.
“It was a pilot program and a proof of concept, and I believe it has worked. Those enjoying 20 to 24 hours of electricity daily are satisfied, despite paying ₦209 per kilowatt-hour, as they consider it a better alternative to generators,” he said.
He added that as efforts to upgrade distribution and transmission infrastructure continue, more customers would be moved to Band A.
Following the migration of some customers, the power sector recorded a 70% revenue increase, from ₦1.05 trillion in 2024 to approximately ₦1.7 trillion.
“We will review the tariff, but this does not mean an increase,” Adelabu clarified. “Our goal is to build on our 2024 progress, not just to grow sector revenue, but also to invest in upgrading the aging infrastructure needed to support a stable electricity supply.”
He also expressed concerns over the slow pace of migrating Band B and C customers to Band A, attributing it to the reluctance of Electricity Distribution Companies (DisCos) to invest in the sector.
“A significant amount of investment is needed to accelerate this transition, and the regularization of tariffs for Band B and C customers to Band A will be carried out gradually,” he concluded.
