FG to Review Electricity Tariffs for Band B and C Customers to Ensure Fair Pricing

The Federal Government of Nigeria has announced plans to revise electricity tariffs for Band B and C customers to address disparities in the current billing structure and attract more investment in the power sector.

Minister of Power, Adebayo Adelabu, pointed out that Band B customers, who receive 17 to 18 hours of electricity daily, currently pay N63 per kilowatt-hour, while Band A customers, with only two extra hours of supply, are charged N209 per kilowatt-hour. He described this pricing system as “unfair” and emphasized the need for a more balanced tariff structure.

Under Nigeria’s service-based tariff system, electricity consumers are categorized by daily supply duration:

• Band A: 20+ hours
• Band B: 16 to 20 hours
• Band C: 12 to 16 hours
• Band D: 8 to 12 hours
• Band E: 4 to 8 hours

Despite the classification, the tariff system has been met with criticism. In January 2025, Nigeria Labour Congress (NLC) President Joe Ajaero condemned the migration of customers between bands, calling it “the highest level of 419” and raising concerns about unfair criteria and potential discrimination.

The government continues to subsidize electricity, with Minister Adelabu revealing in April 2024 that despite tariff increases for Band A customers, subsidies covered about 67% of total power sector costs, amounting to N1.8 trillion that year.

The proposed tariff review aims to establish a fairer billing system that ensures customers pay according to their actual electricity supply, reducing inequities in pricing.