Nigeria eyes tariff review for Band B, C electricity customers

The federal government is considering a tariff review for Band B and C electricity customers as part of ongoing reforms in the power sector.

This move comes amid efforts to improve electricity supply, ensure cost-reflective tariffs, and attract investment into the nation’s struggling energy sector.

Under the current structure, customers in Band B, who enjoy 18 to 17 hours of electricity supply, pay N63 per kilowatt-hour, while those in Band A, with only two hours more of supply, are charged N209 per kilowatt-hour.

The proposed review is part of a broader strategy to phase out electricity subsidies and transition to a fully cost-reflective tariff system, which the government believes will incentivize efficiency and sustainability in the sector.

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Adebayo Adelabu, minister of power said the government is considering this option over the slow pace of migration to Band A customers, which he attributed to the reluctance of Distribution Companies to make the necessary investments.

Adelabu described this as “unfair” and stressed the need for a regularisation of the tariffs to create a more balanced and equitable pricing system.

The minister said, “We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted.

“We are going to look at it and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but also to ensure that we can invest more in revamping all these dilapidated infrastructures.”