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Business & Economy

Households, businesses, organisations cry out over electricity costs amid blackouts

The FrontierThe FrontierJune 23, 2026 504 Minutes read0

Across Nigeria, anger is mount­ing over rising electricity tariffs as households and businesses complain that they are paying significantly higher bills without any meaning­ful improvement in power supply, raising fresh concerns about ener­gy poverty and the survival of small enterprises.

The backlash has been partic­ularly intense among Band A cus­tomers — consumers classified as receiving a minimum of 20 hours of electricity daily and charged the highest tariff rates, reports Daily Independent.

Although the service-based tariff regime was introduced to en­courage improved electricity delivery, many consumers ar­gue that the promise of better power supply has failed to ma­terialise.

From Lagos and Abuja to Port Harcourt, Kano, Enugu and Ibadan, residents say elec­tricity distribution companies (DisCos) continue to issue hefty bills despite persistent outages, forcing homes and businesses to depend heavily on expensive petrol and diesel generators.

For many Nigerians, the re­sult is a double financial bur­den: paying premium electric­ity tariffs while still spending heavily on alternative power sources.

In Lagos, fashion entre­preneur, Mrs. Bisi Adeyemi, said the tariff increases have become a major challenge for small business owners strug­gling to remain profitable amid rising operating costs.

“My electricity bill has almost doubled within a few months. We were told Band A customers would enjoy stable power supply, but that is not what we are experiencing. Some days we receive barely 10 to 12 hours of electricity, yet the bills keep increasing,” she said.

Small and medium-sized enterprises (SMEs) already grappling with inflation and weak consumer spending, ap­pear to be among the hardest hit.

In Kano, Musa Ibrahim, who operates a cold-room business, said unreliable elec­tricity has significantly raised his operating expenses.

“Electricity used to be the cheaper option compared to generators. Today, I pay huge electricity bills and still spend heavily on fuel because supply remains unstable. We are ef­fectively paying twice for pow­er,” he lamented.

The story is similar in the Federal Capital Territo­ry, Abuja where business owners say soaring energy costs are threatening jobs and invest­ment.

Esther Okonkwo, who runs a restaurant in Abuja, said she is considering reducing staff strength as electricity expens­es continue to erode revenues.

“Power is critical to my business — freezers, lighting, kitchen equipment and re­frigeration all depend on it. We pay premium tariffs, but outages remain frequent. If this situation continues, many SMEs may not survive,” she warned.

Consumer rights advocates have also raised concerns over the continued use of estimat­ed billing, particularly for customers without prepaid meters.

In Enugu, civil servant, Chinedu Eze, described his monthly electricity bill as “economic punishment.”

“I have a prepaid meter, but many of my neighbours do not have. Their estimated bills are outrageous. Even when transformers break down and communities remain in dark­ness for days, bills still arrive without fail,” he said.

The growing dissatisfac­tion has triggered an increas­ing number of complaints from consumers seeking to be reclassified from Band A to lower tariff bands after concluding that the premium category offers little value for money.

In Port Harcourt, Engineer Tamuno Briggs, said residents in his estate had formally chal­lenged their Band A classifi­cation.

“We have repeatedly ques­tioned the classification be­cause the level of supply does not match what was promised. If customers are charged pre­mium rates, they should re­ceive premium service,” he said.

For low-income house­holds, rising electricity costs are becoming another source of economic hardship at a time when inflation continues to strain household budgets.

In Ibadan, a trader, Mrs. Kemi Alabi, said many fami­lies are now rationing electric­ity usage in an attempt to cope with escalating living costs.

“Food prices are high, transportation costs are ris­ing, and electricity bills keep increasing. Many households now think twice before switch­ing on appliances because ev­ery naira counts,” she said.

Analysts warn that Nige­ria’s electricity sector remains trapped in a deep structural crisis that cannot be resolved through tariff increases alone.

They point to longstanding challenges including inad­equate generation capacity, weak transmission infrastruc­ture, widespread energy theft, poor metering penetration, and mounting debts across the power value chain.

According to industry experts, while cost-reflective tariffs may be necessary to at­tract investment and improve sector sustainability, consum­ers are unlikely to support further price increases with­out visible improvements in service delivery and greater accountability from opera­tors.

The Nigerian Electrici­ty Regulatory Commission (NERC) has consistently de­fended tariff adjustments, arguing that service-based pricing is essential for the long-term viability of the electricity market and should incentivise better service de­livery.

Yet public frustration con­tinues to grow as millions of consumers insist they are pay­ing more while receiving little improvement in supply.

For many Nigerians, the debate over electricity tariffs has moved beyond pricing and regulation — it has become a question of economic surviv­al.

With inflation squeez­ing household incomes and businesses struggling under rising operating costs, the wid­ening gap between electricity charges and actual power supply is fast becoming one of Nigeria’s most politically sensitive economic issues.

Unless electricity supply improves and consumer con­fidence is restored, experts warn that higher tariffs could deepen energy poverty, weak­en already fragile businesses, and intensify resistance to on­going reforms in the country’s troubled power sector.

For an increasing number of Nigerians, the verdict is simple: paying more for unre­liable electricity is no longer reform — it is a burden they can scarcely afford.

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blackoutsBusinesseselectricity costsHouseholdsOrganisations
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