Federal Government Announces Plans to Adjust Electricity Tariffs for Bands B and C.
By Abdulkadir Yahaya, Abuja.
The Federal Government of Nigeria has unveiled plans to amend electricity tariffs for Band B and C customers as part of efforts to address disparities within the current billing system and to foster investment in the power sector.
The Minister of Power, Adebayo Adelabu, shared this development during the public presentation of the National Integrated Electricity Policy and the Nigeria Integrated Resource Plan on Thursday in Abuja.
He highlighted that the decision to consider tariff adjustments is driven by the sluggish migration of customers to Band A, which he attributed to the hesitation of Distribution Companies (DisCos) to make necessary investments.
Currently, customers in Band B, who receive between 18 and 17 hours of electricity supply, are charged N63 per kilowatt-hour. In contrast, those in Band A, who receive only two additional hours of supply, pay a higher rate.
Adelabu described this pricing structure as “unfair” and emphasized the necessity for tariff regularization to create a more equitable pricing framework.
He stated, “We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted. We are going to look at it and see how we can enhance our modest achievements from last year, not only to ensure that we grow the sector but also to provide for more investment in revitalizing our dilapidated infrastructure.”
Adelabu noted that the migration process to Band A has been slower than anticipated, citing a lack of investment from DisCos as a critical factor hindering progress. “Significant investment is required for us to expedite the migration of lower-band customers into Band A. The process is taking much longer than expected,” he added.
In light of these challenges, the government is contemplating a restructuring of the tariff bands to reduce the existing disparities.
The proposed changes will include a new tariff system encompassing Bands A, B, and C, aimed at mitigating these inequalities.
“The gap between Band A tariffs and those of Bands B, C, D, and E is excessively wide,” Adelabu remarked. “We believe this is unjust and, therefore, must undertake measures for regularization.”
The minister affirmed the government’s commitment to reviewing the existing tariff structure while clarifying that such a review does not necessarily indicate an imminent increase in rates.
