The Federal Government has announced plans to review electricity tariffs to address disparities in the current billing system and encourage investment in the power sector.
Minister of Power, Adebayo Adelabu, disclosed this at the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja on Thursday. He emphasized the need for a fairer pricing system, noting that the slow migration of consumers to Band A was due to Distribution Companies’ (DisCos) reluctance to invest in infrastructure.
Under the existing structure, Band B customers, who receive 17 to 18 hours of electricity daily, pay N63 per kilowatt hour, while Band A customers, enjoying just two extra hours, pay N209 per kilowatt hour. Adelabu described this wide disparity as “unfair,” stressing the need for tariff restructuring.
“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,” he said.
The minister also criticized DisCos for failing to invest in infrastructure, which has slowed the transition of lower-band customers to Band A. The government is now considering a new system that will restructure the tariff bands, narrowing the gap between Bands A, B, and C to ensure a more equitable pricing model.
Adelabu reassured Nigerians that the review does not mean an immediate increase in tariffs but aims to make electricity pricing fairer and more sustainable for both consumers and investors.
