- FG plans to adjust electricity tariffs for Bands B and C to match Band A’s N209/kWh rate, sparking consumer opposition.
- Minister of Power Adebayo Adelabu blames Discos’ lack of investment for slow migration to Band A and is pushing for tariff restructuring.
- Consumers and private sector leaders have criticised the proposed hike, calling it “insensitive” given Nigeria’s unstable electricity supply.
The Federal Government plans to adjust electricity tariffs to address billing disparities outside Band A and boost the Nigerian Electricity Supply Industry (NESI) liquidity. The proposed change aims to align Band B and C tariffs with the N209/kWh rate paid by Band A customers, representing about 15% of the 12.82 million power users nationwide.
Power consumers and the Organised Private Sector strongly oppose the proposal, raising concerns over continuous price hikes across various sectors. Critics highlight the government’s N4 trillion debt owed to 24 generation companies (Gencos) and 11 distribution companies (Discos) as part of electricity subsidies.
Minister of Power Adebayo Adelabu announced this plan during the launch of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja yesterday, February 27. Developed in 2024, the NIEP involves international partners like the World Bank, UNDP, and the UK Nigeria Infrastructure Advisory Facility.
Adelabu attributed the need for a tariff review to the slow migration of customers to Band A and blamed Discos’ reluctance to invest. Band B customers, who receive 17-18 hours of daily electricity, pay N63/kWh, while Band A customers with two more hours of supply pay N209/kWh.
“We need to review the tariff,” Adelabu said. “I’m not suggesting an increase, but we must improve and ensure more investment in the sector.”
The government plans to restructure the tariff system by reducing the gap between Bands A, B, and C and eliminating Bands D and E. Adelabu described the current structure as “unfair” and emphasised the need for balanced pricing to encourage investment and improve service delivery.
Consumers and stakeholders oppose this plan. The All Electricity Consumers Forum (AECF) criticised the potential increase as “insensitive,” noting the government’s failure to provide stable electricity. Adeola Samuel-Ilori, the National Coordinator of AECF, condemned the plan, citing Nigeria’s peak generation of only 5,345 megawatts and frequent load rejection by Discos.
“It’s irresponsible to raise tariffs when the infrastructure remains inadequate,” Samuel-Ilori said.
Private sector leaders also expressed their frustration. Segun Kuti-George, Vice President of the Nigerian Association of Small-Scale Industrialists, accused the government of disconnecting from the realities facing Nigerians. He noted, “Businesses already struggle with high tariffs.”
Dr Ikenna Nwosu from the Nigerian Economic Summit Group (NESG) questioned the justification for another increase. “The previous hike lacked sufficient data, and this will worsen both the cost of living and doing business,” Nwosu said.
As the government considers its next move, the debate over tariff adjustments will likely intensify. Consumers and businesses call for a more transparent and fair pricing system to address the long-standing challenges within the electricity sector.