FG to regularise Band B, C electricity tariffs
The Federal Government (FG) has announced plans to regularise electricity tariffs for Bands B, C, and A consumers to create a more efficient and reliable power sector.
Minister of Power, Mr Adebayo Adelabu, made this known during the Public Presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja on Thursday.
The policy documents were developed by the Ministry of Power, with support from the UK Foreign, Commonwealth and Development Office (FCDO) and the UK Nigeria Infrastructure Advisory Facility (UKNIAF).
Under the current tariff system, Band B customers, who receive 17 to 18 hours of electricity daily, pay ¦ 63 per kilowatt-hour. Meanwhile, Band A customers, who receive just two extra hours of supply, pay ¦ 209 per kilowatt-hour.
Adelabu explained that in 2024, the power sector introduced cost-reflective tariffs for a limited group of electricity consumers, accounting for approximately 15% of the market. While this might seem small, he described it as a step in the right direction.
“It was a pilot initiative and a proof of concept, which I believe has been successful. Those receiving 20 to 24 hours of electricity daily are satisfied, despite paying ¦ 209 per kilowatt-hour, as they consider it a better alternative to relying on generators.
“We believe that as we continue to improve our distribution and transmission infrastructure, more consumers will be upgraded to Band A,” he said.
The minister noted that the migration of some customers to Band A had led to a 70% increase in the power sector’s revenue, which rose from ¦ 1.05 trillion in 2024 to approximately ¦ 1.7 trillion.
He stated: “We will reassess the tariff structure. This does not mean an immediate tariff increase, so I don’t want to be misquoted.
“We will review the tariff to build on our modest achievements in 2024, not only to boost revenue but also to fund critical investments in overhauling the sector’s ageing infrastructure.
“Our goal is to ensure the grid can support reliable electricity across the country.”
Adelabu acknowledged that the migration of Band B and C customers to Band A had been slower than expected. He attributed this to Electricity Distribution Companies (DisCos) failing to invest in the sector.
He emphasised that significant investments were required to accelerate the upgrade of lower-band customers to Band A.
“The process of tariff regularisation for Band B and C customers will proceed gradually,” he added.
