The Federal Government has announced plans to review the electricity tariff structure to address pricing disparities and encourage more investments in the power sector.
Minister of Power Adebayo Adelabu made this known during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja on Thursday.
Adelabu expressed concerns over the slow transition of customers to Band A, a category meant for consumers receiving 20 to 24 hours of power supply daily. He attributed this delay to the reluctance of Distribution Companies (DisCos) to invest in infrastructure upgrades.
According to him, the current pricing system is unfair, as Band B customers, who receive only two hours less of power than Band A users, are charged significantly lower rates.
Under the current tariff structure, Band A customers pay N209 per kilowatt-hour, while Band B customers, enjoying 17 to 18 hours of electricity, pay just N63 per kilowatt-hour. Adelabu described this price gap as too wide and unjust, stressing the need for tariff regularization to create a fairer pricing model across all bands.
The government is now considering a restructuring of tariff bands, which could narrow the price gap and ensure a more equitable system for electricity consumers. Adelabu clarified that the review does not necessarily mean an immediate tariff increase but is aimed at encouraging private sector investments in the sector.
He also accused DisCos of delaying investments needed to improve the power supply, which has hindered the expected transition of more customers to higher service bands. “A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A,” Adelabu added.
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