FG to adjust electricity tariffs for Band B, C customers

The Federal Government has announced plans to restructure electricity tariffs to eliminate disparities in billing and encourage investment in the power sector.

Minister of Power, Adebayo Adelabu, made this known on Thursday during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja.

Adelabu expressed concerns over the slow transition of customers to Band A due to the reluctance of Distribution Companies (DisCos) to invest in infrastructure. He highlighted the current imbalance, where Band B customers, receiving 17 to 18 hours of electricity daily, pay ₦63 per kilowatt-hour, while Band A customers, with just two additional hours of supply, are charged ₦209 per kilowatt-hour.

“We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted,” Adelabu stated. “We are going to see how we can improve upon our modest achievements from last year, not just to grow the sector but also to ensure investment in revamping dilapidated infrastructure.”

The minister stressed that the current gap between Band A and other bands—B, C, D, and E—is too wide, making the pricing system unfair. To address this, the government is considering a new tariff structure that will create a more balanced and equitable billing system.

“The migration to Band A should have been faster, but DisCos have refused to invest in the sector. A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A,” he added.