FG Seeks Fairer Electricity Pricing as DisCos’ Investment Delays Stall Band A Migration
The Federal Government has announced plans to review electricity tariffs to address disparities in the current billing system and drive investment in the power sector.
Minister of Power, Adebayo Adelabu, revealed this on Thursday during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja.
Adelabu noted that the slow pace of customer migration to Band A is due to the reluctance of Distribution Companies (DisCos) to invest in the necessary infrastructure.
Tariff Disparity Under Scrutiny
Currently, Band B customers, who receive 17 to 18 hours of electricity daily, pay N63 per kilowatt-hour, while Band A users, with just two additional hours of power, pay N209 per kilowatt-hour. The minister described this pricing model as “unfair” and emphasized the need for a more balanced structure.
“We will look at the tariff again. I’m not saying we’re going to increase it before I’m misquoted,”
Adelabu clarified.
“We need to ensure sustainable sector growth and invest in revamping dilapidated infrastructure.”
Proposed Tariff Restructuring
The government is now considering narrowing the gap between Bands A, B, and C tariffs to create a fairer pricing system.
“The difference between Band A and other bands is too wide,”
Adelabu said.
“It’s not fair, and we must implement some level of regularisation.”
While he confirmed the electricity tariff review, he reassured Nigerians that it does not necessarily mean an imminent rate hike.
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