Band Reflective Tariffs: Nigerian Electricity Consumers Groan Under High Costs, Poor Supply 

Since the introduction of band reflective tariffs in Nigeria’s electricity market, consumers have been caught between the rock of high costs and the hard place of unreliable supply. 

The tariff structure, which categorises consumers into bands A to E based on the number of hours of electricity they receive daily, was introduced by the Nigerian Electricity Regulatory Commission (NERC) to ensure cost-reflective pricing and attract investment into the power sector. 

However, rather than providing the intended relief and improved services, many consumers are lamenting their experience with the system. 

Under the band system, customers in Band A, who are promised a minimum of 20 hours of electricity per day, pay the highest tariffs. 

Band B consumers, expected to receive at least 16 hours, pay slightly less, and followed by Band C with a 12-hour guarantee. Bands D and E, which receive even fewer hours, are charged lower rates. 

In theory, this classification was meant to ensure fairness and improved service delivery. 

However, in practice, the system has left many consumers frustrated. 

For Band A consumers, who pay the highest rates, the frustration stems from not getting the electricity supply they are promised. Many claim that despite paying premium prices, power outages remain frequent. 

“We were told that once we are in Band A, we will get a minimum of 20 hours of electricity daily,” says Uche Onuoha, a business owner in Lagos. “But in reality, we barely get 12 hours. Yet, our bills keep increasing.” 

For those in Bands B and below, the struggle is even worse. Many are paying for erratic electricity supply, while some claim that their communities have been moved to lower bands without notice, effectively reducing their hours of electricity without any corresponding reduction in tariffs. 

Given the foregoing backdrop, households, particularly those in middle-income and lower-income brackets, have been hit hard by the high electricity bills. Many consumers say they have resorted to cutting down on electricity usage to avoid the steep charges, while others complain about unexpected fluctuations in their supply. 

“I used to pay around N15,000 for electricity, but now my bill has almost doubled. Meanwhile, the supply hasn’t improved. It’s like we are paying more for less,” laments Grace Agbo, a civil servant in Abuja. 

Businesses are also struggling, particularly small and medium enterprises (SMEs) that rely on stable electricity to operate. Many have had to adjust their budgets or switch to alternative power sources, further increasing operational costs. 

“Before this new tariff, I could at least manage my costs. But now, between paying for electricity and fueling my generator when the power isn’t available, my expenses have skyrocketed,” says Thompson Iruama, who runs a cold room business in Mowe, Ogun State said. 

At this juncture, it is expedient to ask, “Who Really Benefits?” Proponents of the band reflective tariff argue that it is necessary for the sustainability of Nigeria’s power sector. The goal is to ensure that electricity distribution companies (DisCos) generate enough revenue to improve service delivery and attract private investment. However, many consumers feel that they are bearing the brunt of a system that still does not guarantee reliable electricity. 

Power sector analysts believe that while the tariff system is a step toward cost recovery, it needs to be implemented with fairness and transparency. 

“The tariff structure itself isn’t the problem,” explains energy expert Dr. Abdul Musa. “The real issue is ensuring that DisCos fulfill their service level agreements. If consumers in Band A are paying for 20 hours of electricity, they should get 20 hours. Otherwise, it becomes exploitation.” 

With public dissatisfaction growing, stakeholders are calling on NERC and the DisCos to address the inconsistencies in service delivery. There are demands for a monitoring mechanism to ensure that consumers get the supply hours they are promised. 

Additionally, consumer advocacy groups are urging for more flexible payment options and a review of the tariff structure to reflect the economic realities of Nigerians. 

“Nigerians are willing to pay for electricity,” says consumer rights activist Yetunde Bamidele. “But they want value for their money. It’s unfair to expect people to pay exorbitant prices for a service that is still unreliable.” 

The introduction of band reflective tariffs was meant to bring improvement to Nigeria’s power sector. However, for many consumers, it has brought more hardship. As the groans of electricity users grow louder, it remains to be seen whether NERC and the DisCos will take decisive action to address the concerns or if Nigerians will continue to pay for a service that remains as unreliable as ever.