By Our Reporter
The Federal Government is considering a proposal to raise electricity tariffs once again, with reports indicating plans to align the rates for customers in Band B and Band C with those in Band A. This move, aimed at addressing disparities in electricity payments across different consumer categories, has been met with widespread backlash from the public.
Under the current structure, customers in Band B, who receive 18 to 17 hours of electricity daily, are charged N63 per kilowatt-hour, while those in Band A, with just two more hours of supply, pay N209 per kilowatt-hour. Many have criticized the government’s plan as insensitive, particularly in light of the ongoing economic challenges facing the country.
Minister of Power, Adebayo Adelabu, speaking at the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja, explained that the government is contemplating this tariff adjustment due to the slow pace of migration to Band A customers. He attributed this delay to the reluctance of distribution companies (Discos) to make necessary investments. Adelabu argued that regularizing the tariffs would attract much-needed investment in the power sector, citing calls from potential investors for a cost-reflective tariff regime.
“The migration to Band A should have been faster, but we found out that Discos refused to invest,” Adelabu stated. “A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A, but it is taking a lot of time.”
The minister described the existing tariff gap between Band A and Bands B, C, D, and E as “unfair,” stressing that it was necessary to address the disparity through tariff regularisation.
However, the proposal has drawn sharp criticism, particularly from industry stakeholders. Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists, called the government’s actions “insensitive.” He lamented the government’s lack of focus on providing alternative power sources, highlighting the frequent blackouts and the failure of service providers to meet the nation’s electricity needs consistently.
“I think the government is insensitive to what is happening in the nation. The government is behaving as if they are ruling from outside, as if they are living in another country,” Kuti-George remarked. “Service providers just increased their tariffs, and even the Nigerian Ports Authority raised fees by 15 percent. Why is the government not working on providing alternative power sources? The electricity we have is irregular, and still, no one has been penalized for the constant blackouts.”
As the debate over the tariff increase intensifies, questions remain about how the government plans to address the persistent issues of electricity supply and whether the proposed adjustments will truly benefit consumers.
With additional reports from the Punch