The Federal Government has announced plans to restructure electricity tariffs for Band B and C customers, aiming to address disparities in the billing system and attract more investment into the power sector.
Minister of Power, Adebayo Adelabu, disclosed this on Thursday during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja. He expressed concerns over the sluggish migration of customers to Band A, blaming Distribution Companies (DisCos) for failing to invest in critical infrastructure.
Currently, Band B customers receive between 17 and 18 hours of electricity daily and pay ₦63 per kilowatt-hour, while Band A customers, who get just two extra hours of supply, are charged significantly higher rates. Adelabu described this pricing model as “unfair” and emphasized the need for a more equitable tariff structure that encourages sector growth and infrastructure development.
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He reassured Nigerians that while the government is committed to reviewing electricity tariffs, there is no immediate plan for an increase. Instead, the review will focus on improving efficiency and ensuring that lower-band customers can transition to Band A more swiftly.
“The migration to Band A should have been faster, but DisCos have refused to invest,” Adelabu said. “A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A, and unfortunately, it is taking too long.”
To bridge the gap between B and A and other tariff bands, the government is considering a comprehensive restructuring of the pricing system. Adelabu reaffirmed that the goal is to create a fair and sustainable electricity market, not to impose sudden price hikes.
