The Federal Government has announced plans to review electricity tariffs as part of efforts to address imbalances in the current billing structure and stimulate further investment in Nigeria’s power sector.
Minister of Power, Adebayo Adelabu, revealed this at the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja on Thursday.
Adelabu emphasized that the review was necessary due to the slow pace of migration of customers to Band A— a situation he attributes to Distribution Companies (DisCos) failing to make the required investments in infrastructure.
Under the present system, customers in Band B, who receive between 17 to 18 hours of electricity daily, pay N63 per kilowatt-hour, while Band A customers, receiving just two extra hours of supply, are charged N209 per kilowatt-hour.
Calling this pricing structure “unfair,” Adelabu stressed the need for a more balanced tariff system. “We will look at the tariff again,” he said, clarifying that the review was not necessarily an indication of an impending price hike. “We are examining how we can build on the modest progress made last year, ensuring growth in the sector while also securing the investment needed to revitalize the country’s aging power infrastructure.”
Adelabu pointed out that the transition to Band A should have occurred faster but has been hampered by the reluctance of DisCos to invest in the necessary upgrades.
He described the disparity between Band A and other tariff bands—B, C, D, and E—as too wide, calling it “unjust” and something that requires immediate attention.
To correct these imbalances, the government is exploring a restructured tariff system that would address the inequalities between the different bands.
Adelabu reiterated that this tariff review aims to create a fairer, more equitable electricity pricing system, but assured Nigerians that an increase in rates was not a foregone conclusion.
