Tariff Review Planned For Band B And C Electricity Customers In Nigeria

The federal government is considering a tariff review for Band B and C electricity customers as part of ongoing power sector reforms.

The move aims to improve supply, ensure fair pricing, and attract investment.

However, concerns are growing over its impact on consumers already struggling with high energy costs.

Tariff Review

Currently, Band A customers, who receive about 20 hours of electricity daily, pay ₦209 per kilowatt-hour.

In contrast, Band B customers, who get only slightly fewer hours (17 to 18), pay just ₦63 per kilowatt-hour.

This sharp difference has sparked concerns about fairness in electricity pricing.

Phasing Out Subsidies

To address this issue, the government plans to phase out electricity subsidies and implement a cost-reflective tariff system.

Officials believe this approach will boost efficiency and encourage investors to strengthen infrastructure.

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Minister Criticises DisCos

Another issue Nigeria’s energy sector is facing is lack of investment in the sector.

On the issue of investment, the Minister of Power, Adebayo Adelabu, criticised Distribution Companies (DisCos) for failing to invest in supply infrastructure.

He says this has slowed the transition of customers to Band A.

He called the current pricing structure “unfair” and urged a tariff adjustment to create a more balanced system.

Balancing Costs And Sustainability

“We will review the tariff structure.

However, I am not saying we will increase it—before I am misquoted,” Adelabu clarified.

“We want to build on last year’s progress, expand the sector, and invest in upgrading outdated infrastructure.”

As these discussions unfold, the government must strike a balance between affordability and the need for a stable, sustainable power sector.

Any changes will directly affect millions of electricity consumers across Nigeria.

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