The Federal Government has announced plans to regularize electricity tariffs in an effort to address disparities in the current billing system and foster greater investment in the power sector.
Minister of Power, Adebayo Adelabu, revealed the government’s intentions during the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja on Thursday.
He explained that the government is considering this move due to the slow pace of migration to Band A customers, which he attributed to Distribution Companies (DisCos) being reluctant to make the necessary investments.
Under the current tariff structure, customers in Band B, who receive 17 to 18 hours of electricity supply, are charged N63 per kilowatt-hour, while those in Band A, who receive just two more hours of supply, are billed N209 per kilowatt-hour.
Adelabu described this disparity as “unfair” and emphasized the need for tariff regularization to create a more balanced and equitable pricing system.
“We will review the tariff,” the minister said. “I’m not saying we’re going to increase the tariff before I am misquoted. We’ll look at it to see how we can build on last year’s modest achievements—not just to grow the sector but also to invest in revamping the deteriorating infrastructure.”
He further noted, “The migration to Band A should have happened faster, but DisCos have failed to invest. The sector needs substantial investment to accelerate the migration of lower-band customers to Band A, and this is taking longer than expected.”
In light of these challenges, the government is considering restructuring the tariff bands to reduce the current wide gap between them. A proposed new system encompassing Bands A, B, and C would aim to address these inequities.
“The gap between Band A tariffs and Bands B, C, D, and E is too wide,” Adelabu remarked. “It is neither fair nor just, and we must regularize it to make the system more equitable.”
The minister assured that the government is committed to reviewing the existing tariff structure, though he was quick to clarify that this review does not signal an imminent increase in rates.
