The Federal Government has announced plans to adjust electricity tariffs to address disparities in the current billing system and attract more investment in the power sector.
Speaking at the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja, Minister of Power Adebayo Adelabu revealed that the government is considering tariff adjustments due to the slow migration of customers to Band A. He attributed this delay to Distribution Companies’ reluctance to invest in necessary infrastructure.
Currently, Band B customers, who receive 17 to 18 hours of electricity daily, pay ₦63 per kilowatt-hour, whereas Band A customers, who receive just two extra hours, are charged ₦209 per kilowatt-hour. Adelabu described this gap as unfair and emphasized the need for a more balanced pricing structure.
“We will review the tariff structure—not necessarily to increase it—but to improve upon last year’s achievements,” he clarified. “We need to grow the sector and attract investments to upgrade deteriorating infrastructure.”
He also criticized Distribution Companies for their slow investment in power infrastructure, stating that their reluctance has hindered the migration of lower-band customers to Band A.
To address these issues, the government is considering restructuring tariff bands to reduce the wide price gap between them. A revised system, covering Bands A, B, and C, is being proposed to ensure fairer pricing.
“The difference between Band A and the other bands is too wide, which is unjust. Some level of tariff regularization is necessary,” Adelabu stated.
While confirming the government’s commitment to a tariff review, he reassured Nigerians that this does not automatically mean an increase in rates.
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