The Federal Government has announced plans to regularize electricity tariffs for Band A, B, and C customers as part of efforts to create a more efficient and reliable power sector. The Minister of Power, Adebayo Adelabu, made this known during the Public Presentation of the National Integrated Electricity Policy (NIEP) and the Nigeria Integrated Resource Plan in Abuja on Thursday.
The newly unveiled policy document was developed by the ministry with support from the UK Foreign, Commonwealth and Development Office (FCDO) and the UK Nigeria Infrastructure Advisory Facility (UKNIAF). It aims to address pricing inconsistencies in the current tariff structure and ensure consumers get value for their payments.
Under the existing framework, Band B customers receive between 17 to 18 hours of electricity daily and pay ₦63 per kilowatt-hour (kWh), while Band A customers, who receive only 2 to 6 extra hours, pay a significantly higher rate of ₦209 per kWh. The disparity in pricing and service delivery has been a point of concern, prompting the government to explore tariff adjustments that better reflect power consumption and supply patterns.
Adelabu emphasized that Nigeria’s power sector took a significant step in 2024 by adopting cost-reflective tariffs for about 15% of electricity consumers. While this percentage may seem small, he noted that it represents a key milestone in ongoing sector reforms. He further stated that continuous improvements in electricity distribution and transmission infrastructure would enable more customers to be upgraded to Band A, allowing them to benefit from more stable power supply.
“As we continue to improve our distribution and transmission infrastructure, more consumers will be upgraded to Band A,” he said.
According to the minister, the migration of some customers to Band A has already yielded a 70% increase in power sector revenue, which rose from ₦1.05 trillion in 2024 to ₦1.7 trillion. However, he clarified that the tariff review does not necessarily imply an increase but is designed to boost revenue, enhance sector growth, and modernize outdated infrastructure for a more stable electricity supply.
Adelabu also stressed the need for greater investment in Nigeria’s power sector to accelerate the transition of lower-band customers to Band A. Improved funding, he noted, would play a critical role in expanding electricity access and enhancing service delivery across the country.
In February 2025, Eko Electricity Distribution Company (EKEDC) officially launched the free distribution of prepaid meters to Band A customers under the Meter Acquisition Fund (MAF) scheme. This initiative is part of broader efforts to ensure accurate billing and improve consumer confidence in the power sector.
Additionally, in November 2024, the Nigerian Electricity Regulatory Commission (NERC) mandated electricity distribution companies (DisCos) to guarantee at least 20 hours of daily electricity supply to Band A customers. This directive aligns with the government’s broader push to improve service delivery and ensure that consumers receive power supply that matches their tariff rates.
The ongoing tariff review and regulatory measures aim to improve power sector revenue, enhance infrastructure investments, and ultimately provide more reliable electricity to Nigerian consumers.
