FG Plans to Regularise Electricity Tariffs to Address Disparities

The Federal Government has confirmed plans to regularise electricity tariffs across different consumer bands in a bid to address disparities in the current billing system and attract investment into the power sector.  

Minister of Power, Adebayo Adelabu, made this announcement on Thursday during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja. He emphasized the need for a fairer pricing model that ensures balance across the various consumer categories.

Currently, electricity consumers in Band B, who receive between 17 to 18 hours of electricity daily, pay N63 per kilowatt-hour. Meanwhile, Band A consumers, who receive only two additional hours of power, are charged significantly higher at N209 per kilowatt-hour.

Adelabu described this pricing model as “unfair” and stressed the need for adjustments. “We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted,” he said, clarifying that the focus is on achieving a more equitable system rather than imposing higher charges.

The minister highlighted that the wide gap between Band A tariffs and those of Bands B, C, D, and E needs to be addressed. “The gap between the Band A tariffs and Bands B, C, D, and E is just too wide,” he stated. “We believe it’s not fair. It is not just, and we must be able to carry out some level of regularisation.”

Beyond addressing disparities, Adelabu also emphasized the importance of a pricing structure that would attract investments into the power sector. He noted that improving the tariff system would enable the government to revamp aging infrastructure and ensure sustainable growth in electricity supply.