FG to review Electricity tariffs for Band B and C customers

The Federal Government of Nigeria has announced plans to review electricity tariffs for Band B and C customers to correct disparities in the current billing system and attract more investment into the power sector

Minister of Power, Adebayo Adelabu, noted that under the existing tariff structure, Band B customers, who receive 17 to 18 hours of electricity daily, pay N63 per kilowatt-hour, while Band A customers, with just two additional hours of supply, are charged N209 per kilowatt-hour. He described this as unfair and stressed the need for a more equitable pricing model.

Nigeria’s service-based tariff system classifies consumers into bands based on their daily power supply:

• Band A: 20 hours or more
• Band B: 16 to 20 hours
• Band C: 12 to 16 hours
• Band D: 8 to 12 hours
• Band E: 4 to 8 hours

Despite this classification, the tariff structure has been widely criticized. In January 2025, Nigeria Labour Congress President Joe Ajaero condemned the migration of customers between bands, calling it “the highest level of 419” and raising concerns about unfair treatment of consumers.

The government has continued to subsidize electricity costs despite previous tariff increases. In April 2024, Minister Adelabu revealed that even with higher charges for Band A customers, the government still covered about 67% of total electricity production, transmission, and distribution costs, amounting to N1.8 trillion in subsidies that year.

The proposed tariff review aims to establish a fairer pricing system that better reflects the actual electricity supply received by customers, ensuring more balanced charges across different bands.

Follow Us on Facebook – @LadunLiadi; Instagram – @LadunLiadi; Twitter – @LadunLiadi; Youtube – @LadunLiadiTV for updates