The Federal Government has announced plans to review electricity tariffs for customers in Bands A, B, and C to create a more efficient and reliable power supply.
This was disclosed by the Minister of Power, Adebayo Adelabu, during the public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan in Abuja on Thursday.
The policy was developed by the ministry with support from the UK Foreign, Commonwealth and Development Office (FCDO) and the UK Nigeria Infrastructure Advisory Facility (UKNIAF).
Current Electricity Tariffs and Differences
Under the current structure:
- Band B customers, who receive 17 to 18 hours of electricity daily, pay N63 per kilowatt-hour (kWh).
- Band A customers, who get slightly more supply (about 2 to 6 additional hours), pay N209 per kWh.
Adelabu explained that in 2024, the government introduced cost-reflective tariffs for about 15% of electricity consumers. While this may seem like a small percentage, he emphasized that it represents a key step in the power sector’s reform.
He also noted that improving the country’s electricity distribution and transmission networks would allow more customers to move to Band A, which receives the highest power supply.
“As we continue to strengthen our infrastructure, more customers will be upgraded to Band A,” he said.
The Minister revealed that migrating some customers to Band A had already led to a 70% increase in revenue for the power sector, from N1.05 trillion in 2024 to N1.7 trillion.
He clarified that the tariff review does not necessarily mean an increase in electricity rates but aims to boost revenue, improve service delivery, and upgrade old infrastructure.
What You Should Know
- In February 2025, the Eko Electricity Distribution Company (EKEDC) began distributing free prepaid meters to Band A customers under the Meter Acquisition Fund (MAF) scheme.
- In November 2024, the Nigerian Electricity Regulatory Commission (NERC) directed power distribution companies (DisCos) to ensure that Band A customers receive at least 20 hours of electricity daily.
- The planned tariff adjustment is expected to generate more revenue, upgrade infrastructure, and provide a more stable power supply for customers.
