In a bid to ensure fairness in Nigeria’s electricity sector, the Federal Government has announced plans to overhaul the current electricity tariff structure, addressing the wide disparity in charges across consumer bands.
The move, according to Minister of Power, Adebayo Adelabu, aims to correct what many Nigerians have described as an unfair system that sees customers enjoying just two additional hours of electricity paying over three times more than others.
Speaking at the public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja on Thursday, Adelabu admitted that the current structure disproportionately favors certain consumers while burdening others.
“It is not fair that a customer enjoying 20 hours of power daily pays N209 per kilowatt-hour, while another receiving 17-18 hours is charged just N63. The gap is too wide, and it must be regularized,” he said.
The planned review is set to pull lower bands (B to E) closer to higher bands without exceeding the current Band A rate.
However, the minister assured Nigerians that the adjustments would not amount to a tariff hike but would rather create a more balanced and equitable billing system.
Beyond tariff adjustments, Adelabu blamed the slow progress in upgrading lower bands to higher bands on Distribution Companies (DisCos), accusing them of failing to invest in infrastructure.
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“We expected the migration of more consumers to Band A to be faster, but DisCos have refused to invest. The government alone cannot fund the power sector. Private sector investments are needed to revamp infrastructure,” he said.
The NIEP and NIRP, unveiled during the event, are part of the government’s broader strategy to restructure the power sector by attracting private investment, improving efficiency, and expanding electricity access to underserved communities.
With many Nigerians struggling under the weight of erratic power supply and high electricity bills, the government’s latest move is seen as a step towards creating a more transparent and consumer-friendly electricity system.