The federal government has announced a significant tariff hike for Band A customers, who enjoy 20 hours of electricity daily.
During a press briefing in Abuja, Musliu Oseni, Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), disclosed that Band A customers would now pay ₦225 per kilowatt-hour, up from the current ₦66.
Band A customers represent 15% of the country’s 12 million electricity consumers. Oseni noted that some customers in this category were downgraded to Band B due to non-compliance with distribution companies’ required hours of electricity provision.
The commission’s decision to increase tariffs aims to streamline the electricity distribution system, with the number of Band A feeders set to reduce from 800 to under 500.
However, the tariff review will not impact customers in other bands. This move aligns with efforts to attract new investment into the power sector and reduce the approximately $2.3 billion spent annually on tariff subsidies.