The Federal Government has announced plans to regularise electricity tariffs for customers for Band A, B and C to ensure a more efficient and reliable power sector.
This disclosure was made by the Minister of Power, Mr Adebayo Adelabu, during the Public Presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan in Abuja on Thursday.
The policy document was developed by the ministry with support from the UK Foreign, Commonwealth and Development Office (FCDO) and the UK Nigeria Infrastructure Advisory Facility (UKNIAF).
Current tariff structures and disparities
Under the current structure, Band B customers receive between 17 to 18 hours of electricity supply and pay N63 per kWh, while Band A customers, who get just 2 to 6 extra hours, pay N209 per kWh, as reported by the News Agency of Nigeria.
Adelabu explained that in 2024, the power sector adopted cost-reflective tariffs for about 15 per cent of electricity consumers. While this may seem like a small percentage, he emphasized that it marks a significant step forward in the sector’s reform.
The Minister of Power further highlighted that continuous improvements to Nigeria’s electricity distribution and transmission infrastructure would allow more consumers to transition to Band A.
“As we continue to improve our distribution and transmission infrastructure, more consumers will be upgraded to Band A.”
Adelabu stated that migrating some customers to Band A led to a 70% increase in power sector revenue, rising from N1.05 trillion in 2024 to N1.7 trillion.
He clarified that the tariff review does not imply an increase but aims to boost revenue, drive sector growth, and upgrade aging infrastructure for a more reliable power supply.
Adelabu pointed out the importance of investment as this is needed to accelerate the transition of lower-band customers to Band A.
What you should know
- In February 2025, Eko Electricity Distribution Company (EKEDC) officially commenced the distribution of free prepaid meters to Band A customers within its coverage areas as part of the Meter Acquisition Fund (MAF) scheme, as reported by Nairametrics.
- In November 2024, the Nigerian Electricity Regulatory Commission (NERC) asked electricity distribution companies (DisCos) to ensure Band A customers receive the required 20 hours of daily power supply.
- The tariff adjustment aims to improve power sector revenue, enhance infrastructure, and ensure more reliable electricity for consumers.
This is good news to the worldwide.