The Federal Government has announced plans to review electricity tariffs to address pricing disparities and encourage investment in the power sector. Minister of Power, Adebayo Adelabu, disclosed this on Thursday in Abuja during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan.
Adelabu explained that the current electricity pricing structure is unfair and requires adjustments to ensure a more balanced system. Under the existing arrangement, Band B customers, who receive 17 to 18 hours of electricity supply daily, pay ₦63 per kilowatt-hour, while Band A customers, who get just two hours more, are charged ₦209 per kilowatt-hour.
“This is unfair,” Adelabu stated. “We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted. We are going to look at it and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but also to ensure that we can invest more in revamping all these dilapidated infrastructures.”
The minister also expressed concerns over the slow pace of migration from lower bands to Band A, which he attributed to the reluctance of electricity Distribution Companies (DisCos) to invest in the necessary infrastructure.
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Adelabu said, “The migration to Band A should have been faster, but we found out that the DisCos refuse to invest. They have refused to invest in this sector. A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A. It is taking a lot of time.”
To address these issues, the government is considering restructuring the tariff bands to close the gap between Band A and lower bands. Adelabu noted that the price difference between Band A and Bands B, C, D, and E is too wide and needs to be adjusted.
Adelabu said, “The gap between the Band A tariffs and Bands B, C, D, and E is just too wide. We believe it’s not fair. It is not just, and we must be able to carry out some level of regularisation.”
While the government is committed to reviewing the tariff structure, Adelabu assured Nigerians that the review does not automatically mean an increase in electricity rates.
This development comes amid efforts to reform the power sector, improve service delivery, and attract more investment to ensure stable electricity supply across the country. The proposed changes, if implemented, could lead to a more equitable pricing system for Nigerian electricity consumers.