The Federal Government of Nigeria has announced plans to review electricity tariffs for Band B and C customers to address disparities in the current billing system and encourage investment in the power sector.

Minister of Power, Adebayo Adelabu, highlighted that under the existing structure, Band B customers, who receive 17 to 18 hours of electricity daily, are charged N63 per kilowatt-hour, while Band A customers, with only two additional hours of supply, pay N209 per kilowatt-hour.

Adelabu described this arrangement as "unfair" and emphasized the need for a more balanced and equitable pricing system.

The service-based tariff system in Nigeria categorizes electricity consumers into bands based on daily supply duration:

Band A: 20 hours or more
Band B: 16 to 20 hours
Band C: 12 to 16 hours
Band D: 8 to 12 hours
Band E: 4 to 8 hours
This classification aims to align tariffs with the quality of service provided.

However, the tariff structure has faced criticism. In January 2025, Nigeria Labour Congress President Joe Ajaero labeled the migration of customers between bands as "the highest level of 419," expressing concerns over the criteria for band classification and potential discrimination among consumers.

Despite previous tariff adjustments, the government continues to subsidize electricity. In April 2024, Minister Adelabu noted that even with increased tariffs for Band A customers, the government was still bearing about 67% of the total production, transmission, and distribution costs, amounting to approximately N1.8 trillion in subsidies for that year.

The proposed tariff review seeks to create a fairer billing system that reflects the actual supply received by consumers, ensuring that customers in different bands are charged appropriately based on their electricity usage and supply duration