The Federal Government has announced plans to restructure electricity tariffs to address disparities in the current billing system and stimulate investment in the power sector.
The Minister of Power, Adebayo Adelabu, disclosed this on Thursday during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja.
According to Adelabu, the slow transition of customers to Band A is partly due to the reluctance of electricity Distribution Companies (DisCos) to invest in the sector. He emphasized the need for tariff adjustments to create a fairer pricing system.
Under the current system, Band B customers, who receive between 17 and 18 hours of electricity daily, are charged ₦63 per kilowatt-hour, while Band A customers—who get just two extra hours of supply—pay a significantly higher rate of ₦209 per kilowatt-hour. The minister described this gap as “unfair” and stressed the need for tariff restructuring.
“We will look at the tariff again,” Adelabu stated. “I am not saying that we are going to increase the tariff before I am misquoted. We are going to assess it and see how we can build upon the modest progress we made last year.”
He pointed out that inadequate investment from DisCos has hindered the expected growth in electricity supply.
“The migration to Band A should have been faster, but we found out that the DisCos refuse to invest,” he noted. “A lot of investment is required for us to accelerate the transition of lower-band customers into Band A, and it is taking longer than it should.”
To address the disparities, the government is considering a restructuring of the tariff bands, reducing the significant gap between them.
“The difference between Band A tariffs and those for Bands B, C, D, and E is too wide,” Adelabu said. “We believe it is neither fair nor just, and we must introduce some level of regularization.”
While reaffirming the government’s commitment to reviewing the tariff system, he clarified that the process does not necessarily mean an immediate increase in electricity rates.
