The Federal Government plans to review electricity tariffs for Band B and C customers, citing an unsustainable N3 trillion subsidy. Power Minister Adebayo Adelabu stressed the need for infrastructure investment and a balanced pricing structure to ensure service improvements while maintaining financial sustainability in Nigeria’s electricity sector.
The Federal Government has revealed plans to reassess electricity tariffs for Band B and C consumers, signaling a potential shift in pricing for millions of Nigerians. This review, which aims to address financial sustainability in the power sector, was disclosed by the Minister of Power, Chief Adebayo Adelabu, during the public presentation of the National Integrated Electricity Policy (NIEP) and the Nigeria Integrated Resource Plan (NIRP) in Abuja.
Adelabu highlighted that the government can no longer sustain the N3 trillion electricity subsidy, making it necessary to evaluate the current pricing structure. He emphasized that while there is no immediate confirmation of a tariff increase, the review will focus on improving service delivery and ensuring adequate investment in infrastructure.
With power generation and distribution improving by 35% in 2024, Adelabu stressed the need for commercial viability in the sector. He criticized electricity distribution companies (DisCos) for their reluctance to invest in upgrading infrastructure, which has slowed the transition of lower-band customers into Band A. The government’s goal is to create a tariff system that balances affordability with long-term growth, encouraging DisCos to invest in modernizing the grid.
As discussions around the tariff review unfold, consumers remain concerned about the potential financial burden. The government has assured stakeholders that any adjustments will be made with careful consideration to ensure fairness while promoting a more efficient and sustainable electricity supply system.
