Just In: FG Set To Review Electricity Tariffs, Address Billing Disparities

The Federal Government has announced plans to regularise electricity tariffs in an effort to correct disparities in the current billing system and encourage increased investment in the power sector.

Naija News reports that the Minister of Power, Adebayo Adelabu, disclosed this at the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan on Thursday in Abuja.

According to Adelabu, the slow pace of migration to Band A customers is largely due to the reluctance of electricity Distribution Companies (DisCos) to make necessary infrastructure investments.

Under the current tariff structure, Band B customers, who receive 17–18 hours of electricity daily, pay ₦63 per kilowatt-hour, Band A customers, who receive just two hours more supply, pay ₦209 per kilowatt-hour.

Describing this pricing disparity as “unfair,” the minister emphasized the need for a more balanced and equitable billing system.

New Tariff Structure Under Review

Adelabu assured Nigerians that the government is not planning an outright tariff hike but will review the existing pricing model to ensure fairness.

“We will look at the tariff again. I am not saying that we are 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 but also to ensure that we can invest more in revamping all these dilapidated infrastructures,” Adelabu said.

The minister accused DisCos of failing to invest in infrastructure upgrades, which has hindered faster migration of lower-band customers into Band A.

“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 because the DisCos refuse to invest,” he stated.

To address this, the government is considering restructuring the tariff system by narrowing the wide gap between Bands A, B, and C to create a more balanced framework.

Adelabu added, “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.”

The government remains committed to reviewing the tariff system in a way that ensures affordability for consumers while supporting sector growth, Adelabu assured.