Electricity consumers in Band B may soon face higher tariffs as the Minister of Power, Adebayo Adelabu, argues they underpay.
He highlighted disparities at the launch of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja.
Band B consumers receive up to 18 hours of power daily but pay significantly less than Band A consumers, who get 20 hours.
Adelabu noted that the government expected faster upgrades to Band A, but DisCos have failed to invest in their infrastructure.
He stressed that electricity distribution companies must invest to facilitate quicker migration of customers from lower bands to Band A.
Adelabu emphasized that adjustments would not exceed Band A rates but would ensure a more equitable pricing structure among bands.
He reassured consumers that no official tariff increase had been announced, and any review would involve proper stakeholder consultations.
The minister stated that any changes in electricity pricing would require a joint sectoral agreement, not unilateral government decisions.
FG Owes DisCos and GenCos ₦4 Trillion in Subsidies
The federal government owes power generation and distribution companies over ₦4 trillion in unpaid electricity subsidies, creating sectoral challenges.
Additionally, electricity distribution companies (DisCos) are owed ₦450 billion in subsidy payments for the 2024 fiscal year alone.
Adelabu warned that the government could no longer sustain the current subsidy model and is considering a more targeted approach.
He questioned how GenCos could maintain infrastructure, service turbines, pay staff, and purchase gas while dealing with huge debts.
