- Rural communities pay up to ₦280/kWh, higher than Band A tariffs.
- Solar-powered mini-grids provide stable electricity but remain costly.
The Federal Government has revealed that some rural communities in Nigeria pay higher electricity tariffs than Band A consumers. These communities enjoy a more stable power supply, raising fresh concerns about fairness in energy pricing.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, disclosed this during an interview on Channels Television’s The Morning Brief. He explained that some rural areas pay between ₦250 and ₦280 per kilowatt-hour. This rate surpasses what Band A customers pay in urban centres.
According to Aliyu, the tariff charged depends on the cost of infrastructure deployed by REA. Communities powered by solar mini-grids often face higher prices because these projects require significant upfront investments. However, unlike many urban consumers, he stressed that residents benefit from reliable electricity.
REA has delivered several mini-grids and interconnected systems to hospitals and universities across Nigeria’s six geopolitical zones. These projects remain crucial for bridging electricity access gaps in underserved areas.
Despite privatisation, Nigeria’s power sector still struggles. Low investment, inconsistent policies, and technical challenges affect electricity generation, transmission, and distribution. As a result, both households and businesses face outages and rising energy costs.
Last year, the Nigerian Electricity Regulatory Commission (NERC) approved an increase in tariffs from ₦66 to ₦225 per kilowatt-hour. The hike drew heavy criticism, particularly due to increased petrol and diesel prices. For many Nigerians, this has worsened economic hardship.
Energy experts have also questioned the electricity banding system. In April, analyst Ikechukwu Amaechi described the Band A model as misleading because many customers do not receive the promised 20 hours of supply.
Ultimately, the government’s admission highlights a stark imbalance in Nigeria’s electricity pricing. Rural dwellers may pay more but often receive a steadier supply than Band A consumers, who still experience unreliable power.