•Power transmission line
Over a year after the Nigerian government hiked electricity tariffs for Band A customers, users across the country have continued to express frustration over what they describe as exorbitant charges for power supply that is neither reliable nor consistent.
Many of the affected consumers, who spoke with our correspondent, said the policy appears more focused on boosting the revenues of electricity distribution companies (DisCos) than delivering on service expectations, reports Weekend Trust.
In April 2024, the Nigerian Electricity Regulatory Commission (NERC) raised the tariff for Band A customers by over 300 per cent — from N68 per kilowatt-hour (kWh) to N225/kWh — effectively removing them from the category of users benefiting from government subsidies.
The government, through the Minister of Power, Adebayo Adelabu justified the hike as necessary to stimulate investments in the power sector and reduce the burden of subsidy payments.
Band A customers are theoretically entitled to a minimum of 20 hours of electricity daily. However, multiple reports indicate that this benchmark is rarely met.
While the band classification guarantees at least 20 hours electricity supply to users on Band A, some DisCos have not been able to achieve this, leading to NERC ordering a downgrade of feeders that do not meet the requirement and in some cases compensation.
Steady supply but high billing
Emmanuel Abel an Asokoro resident notes that he consumes N120,000 worth of electricity monthly.
Abel said “I have no option than to pay the bill as it keeps us away from the generators which will cost almost the same or even more. In my area, we get more than 20 hours of electricity so I won’t complain that I am not getting what I paid for.”
For Florence Ajayi in Lugbe, energy conservation has become necessary. “Before, N2,000 worth of electricity lasted a week. Now, I spend N7,000 weekly and limit my refrigerator usage to 12 hours a day,” she said.
“I now spend at least N25,000 monthly. Even with steady power, this cost is too high for my income.”
She said that even though the electricity is steadily available, what she gets paid monthly is not enough for her to spend so much on electricity, hoping that the government rethinks the tariff increase.
Small businesses feel the heat
Small business owners across the country have been the worst hit as many of them have continued to cry out over the burden of the band A tariff.
In Abuja’s Gwarinpa area, web developer Jeremiah Yibowei said the new tariffs have upended his budgeting.
“N10,000 used to give me 136 units and lasted over a week; now it’s just 42 units,” he said.
“It’s hard to sustain. This level of billing isn’t realistic for most Nigerians.”
“Yes, the power supply may have improved, but electricity should be affordable in a modern society,” he added.
Halima Muhammad, a civil servant living in Jahi, echoed the same concern. With a monthly salary of N135,000, she said about 10 percent of her income goes into electricity bills.
“This is not sustainable. I have a lot of responsibilities and feeding is already very expensive.”
Despite the challenges, she agreed that solar offers a promising alternative.
“Yes, without any doubt,” she said, when asked if she would consider switching to solar.
In Wuse 2, Abubakar Isa, a fashion designer, said the tariff adjustment has taken a toll on his business operations.
He explained that his electricity bills rose sharply from under N1,000 for 18 units to about N5,000 for the same amount.
“Profit is the main purpose of every business, so we had to raise our prices, but many clients are not happy,” he said.
In Bayelsa State, business owners on Band A said despite paying higher bills, the supply is not commensurate, lamenting that they still buy fuel for generators because of the epileptic power supply.
A phone repairer, Mr Uche Godfrey, told our correspondent that despite being on Band A, which is popularly called ‘Federal Light’ in Bayelsa State, he still fuels his generator most days to run his shop.
He said the billing is so high that he pays between N50,000 and N70,000 monthly for electricity.
He said the vandalisation of electrical infrastructures which most times throw the state into darkness for months is also a challenge.
He called on the authorities to ensure that residents have adequate power supply to commensurate with the amount being paid as bills.
Tareibi Peter, another Band A customer who runs a laundry shop in Yenagoa, told our correspondent that the line is not as special as people think because power supply is not constant, he said.
“We’re paying more but still rely heavily on generators. It defeats the purpose,” he said.
He doesn’t rely on the public electricity for his business, else he will lose most of his customers.
Mr. Kingsley Ebendo noted that though supply is relatively better than lower bands, it’s not worth the N60,000 he pays monthly. He said they had better power supply when they relied on the state’s gas turbine.
“There was a time when light was steady in this state. From 1999 to 2013, there was constant power supply as we were using a gas turbine, and people were not paying bills because it was free, but now that we are paying, we do not even see the light. Governor Douye Diri has promised us that the gas turbine will be ready by December, and we are praying that he keeps to his word because that will be the only way out of this power crisis issue.”
Abdulbasit Yakubu who runs a consultancy firm in Kaduna said he was placed on Band A some months ago. He got 22.3 units for N5,000 on his recent recharge.
“We use only five ceiling fans, two televisions and about 18 energy bulbs. Most of these appliances are in use only during office hours, except for the energy bulbs that serve as security lights at night. We dare not turn on our air conditioners and refrigerator, otherwise we will consume 22 units in two days,” he said.
“But in the community where I stay, I get 97.1 units for the same N5,000. With that, I have the privilege of using a deep freezer, water heater, electric kettle and other appliances and the unit can last up to a month.”
In his opinion, “The idea of paying higher because you have 20 hours of electricity supply, is unfair. In fact, customers on Band A are paying too much. For me, let it be a flat rate for all bands. Allow the number of hours to determine customers’ consumption. That is, if a customer on Band A, B or D buys units worth 5,000, let them all get the same amount of units and allow the Band A customer’s units be consumed by the uninterrupted supply they get.”
Patience Chukwu who runs a business centre said she has resorted to using solar for her computers and printer.
She only uses electricity for the photocopying machine because it needs a lot of power. Her two fans, three bulbs and four computers are all on solar. That way, she says she is able to use N10, 000 a month.”
She called for a review of the tariff to sustain small businesses like hers.
Coping mechanisms
In Ilọrin, the Kwara State capital, officials of the Ibadan Electricity Distribution Company (IBEDC) have listed areas such as New Yidi Road, Irewolede (11 KVA), Pipeline (33 KVA), and GRA among those recently migrated to Band A under the revised electricity tariff structure.
Residents of these areas who spoke to our correspondent noted that while electricity supply has improved significantly, many households have devised ways to manage and reduce consumption in order to cope with the increased cost.
According to Mr Nosa Osaretin, a resident of Mandate Estate, Irewolede, his experience as a Band A consumer using a prepaid meter has required a shift in how his household manages electricity.
“With N1,000, we now get only about four units. That translates to around N5,000 for 20 units. Depending on our usage, we might spend N10,000 in two weeks and between N15,000 and N20,000 in a month. But we don’t use a deep freezer and we make sure to control consumption by using only a few bulbs, the washing machine, and low-energy appliances,” he explained.
While he admitted that electricity costs are now much higher, Mr Osaretin said residents in the area enjoy an average of 18 hours of electricity supply daily, an improvement compared to the past, which, for some, justifies the higher tariff.
On his part, a resident at GRA, Alhaji Ibrahim Abdullahi, acknowledged that although electricity supply has become more stable in his area, his family has had to introduce internal measures to avoid overspending or wastage.
“We decided to peg our monthly electricity expenditure at N10,000. We only go beyond that if it is absolutely necessary. It’s part of our budgeting strategy to free up funds for other pressing family needs,” he said.
Other residents expressed mixed feelings. Many acknowledged the improvement in power supply, while noting the increase in billing, particularly for those on prepaid meters, while others raised concerns about transparency in metering and the sustainability of Band A service levels, especially in areas that have only recently started enjoying consistent supply.
A trader in Ilorin, Mallam Ismail Onaolapo, who deals in frozen foods, spends at least N30,000 monthly on electricity, with an average consumption of N10,000 for every 10 days.
Onaolapo said the rising cost of electricity has forced them to devise alternative means to manage power usage. According to him, the shop relies on two large deep freezers, but only one is now in use during off-peak hours to conserve energy.
“To ensure we don’t exceed our electricity budget, we switch off one of the freezers after business hours along with other appliances that are not immediately necessary. This has helped us maintain the quality of our goods while reducing overall power consumption,” he explained.
He added that prior to the recent tariff increase, they used to spend between N4,000 to N5,000 monthly on electricity.
Companies in Kano overburdened
In Kano State, most of the areas on Band A fall under areas identified as industrial areas mostly in Challawa, Sharada, Bompai and Dakata, with a handful of other residential areas.
A small-scale industrialist in the state, Yusuf Bello Yakasai, who operates around Sharada Industrial area, said more than 60 per cent of their profit goes to electricity bills.
He said, “If you visit Sharada and Dakata industrial estates, most of us pay N260 per unit. So, for us who use heavy industrial machines that consume more light, we end up spending the bulk of our earnings on electricity bills.
“I pay about N4 million monthly. Yet, we rarely get the promised hours,” he said.
“Sometimes, the light comes on and goes off as soon as production starts. It’s a disaster.”
He called on the federal government to consider making the electricity affordable for industries so that the country’s economy can bounce back.
Another industry owner, Habibu Sulaiman, said he spends about N2 million monthly.
“We’re employers of labour. If the environment isn’t favourable, how will industries thrive?” he asked.
“The federal government should consider restoring electricity subsidies for industries to survive because no investor will want to put his money where there is little or no gain.”
Solar emerges as alternative
As the challenges persist, more Nigerians are turning to solar energy.
In Abuja’s Kubwa area, solar and CCTV installer Bilal Muhammad said he has cut his monthly electricity bill from N20,000 to under N5,000 after installing a N1.5 million solar system.
“We estimate we’ll break even soon. The system is expected to last more than 25 years, so yes, it’s definitely worth it,” he added.
Although his household is still connected to the national grid, Bilal said they mostly rely on solar, with backup batteries ensuring they hardly notice outages.
In Asokoro, Abubakar Sadiq Murtala, who runs a fish farm, said his business could no longer cope with NEPA’s unreliability and the high cost of petrol. He invested heavily in solar panels and has now completely cut off dependence on grid electricity and generators.
“We were spending more than N60,000 a month on electricity and petrol,” he said. “This was the only medium to minimise expenses in the short and long run.”
He added that going solar has enabled his farm to maintain stable pricing, despite the economic hardship facing many customers.
Adamu Ismail, a Kano-based resident on Band A, said he has already begun his transition to solar energy due to the high cost of being on Band A.
“Soon, I will acquire all the facilities I need to fully transition to solar energy in my house because I can’t be spending more than N200,000 every month in the name of electricity bills. It is not economical,” he concluded.
For Ahmed Tahir, he decided to switch some of its electricity appliances to solar energy three months after he was upgraded to Band A. He said he made the choice when he realised his house in an estate in Life Camp was consuming more than N80,000 electricity units in a month.
“I had to switch my conditioners and freezers to solar in a bid to lower the cost of what is being consumed daily at home. Paying over N80,000 on electricity bill would eat deep into my salary, which is the reason why I took the decision.
He added that there is also a laid down rule on ironing clothes at night to utilise the sun generated from during the day.
“The solar uses a 10kva inverter battery so it has a large capacity, while it cost me a lot to get it, I looked at what I will save from consuming less electricity from the national grid, now N20,000 units last us up to three weeks.
Efforts to hear from KEDCO proved abortive as the calls and messages sent to the spokesperson of the DisCo, Sani Bala Sani, were neither answered, responded to nor returned.
DisCos ordered to compensate customers
Despite the complaints, the NERC said it is enforcing regulations. In April and May 2025, it ordered nine DisCos to downgrade 33 Band A feeders for failing to meet the 20-hour supply benchmark. It also ordered compensation for customers on 365 feeders.
The instruction was contained in the Supplementary Order to the Multi-Year Tariff Order (MYTO).
A breakdown showed that Eko DisCo had the largest feeders to be compensated with 147 feeders. While the major reason was for not meeting up with the 20 hours supply, 37 feeders were to be compensated due to load shedding caused by the Transmission Company of Nigeria (TCN).
This is followed by Ikeja DisCo with 75 feeders to be compensated, 3 were downgraded to lower bands but the company got an approval to upgrade 8 feeders to higher bands.
Also, Port Harcourt DisCo was ordered to compensate 44 feeders and downgrade 5 feeders while Abuja DisCo was urged to compensate 41 feeders and had 2 feeders downgraded.
Similarly, Enugu DisCo was ordered to compensate customers on 15 feeders with two feeders downgraded. Kaduna DisCo was urged to compensate seven with the downgrade of another four feeders while Yola and Kano DisCos were ordered to compensate two feeders each.
According to the NERC, the decision was made “in pursuant to the provisions of the Order on Migration of Customers and Compensation for service failure under the Service-Based Tariff Framework (“Order on Migration”) and the directive to Electricity Distribution Companies on Band A Feeder Performance Monitoring, Upgrade and Downgrade.
DisCos lack capacity – Experts
Electricity market analyst, Lanre Elatuyi said the price hike was not exactly a new tariff but a removal of subsidy, exposing DisCos’ lack of infrastructure.
Elatuyi stated that there is a regulatory mechanism to protect customers that are not getting up to 20 hours of supply.
“So the question is, do these DisCos have the infrastructure to supply 20 hours of supply to these Band A customers in the first place? The answer is No. It shows that they were not prepared for it.
“If you look at the national load allocation for each of the DisCos, a DisCo that is taking 300 megawatts, I can’t say that is the demand it wants. There are only suppressed loads. So, if customers in real-time are off taking more than what they should, then there is going to be stress on some Band A customers and they won’t have the number of hours as expected.
He added that the problem the electricity sector is facing is not just about DisCos as it goes beyond them.
“It extends to generation and transmission as there are constraints in every part of the value chain. So, there has to be improvement in every segment. The DisCos for now don’t have much capital to invest in capacity expansion or probably infrastructure upgrades. So, if you look at their capital expenditure, how many percentages do they utilise in a year? Can they attract investment from the bank? No. Do they have money to invest? No.
He added that if they don’t invest in infrastructure, there is no way they can adequately serve all their customers, adding that the government is also not paying its fees to bring liquidity into the sector.
“What can the government do? With the Electricity Act and the autonomy given to states, let’s see what happens when states are granted autonomy to operate their own electricity market.
The National President Association for Public Policy Analysis and Executive Director, Consumer Protection Advocacy Centre, Chief Princewill Okorie, said it is unfortunate that privatisation of the sector in 2013 has not given consumers efficient service delivery, adding that when the minister and NERC in their wisdom introduced Band categorisation of consumers for enhanced revenue to DisCos, appropriate measures were not taken to ensure effective service delivery.
“This is a case of the government colluding in extorting the citizens they should protect. It is worrisome. This is not only extortion; it is killing the economy of the country. Most people cannot work again. They increased the price of fuel, diesel, gas, and electricity. How can people survive?” he asked.
“The minister and NERC never considered the ability for Band A customers to pay before they pushed people into it and the worst part is that most Band A customers don’t enjoy 20 hours of steady power supply across the country because the policy was introduced to favour DisCos in their revenue boosting drive while the aspect of service delivery was totally neglected.”
He added that across the country, many consumers are clamouring that they be returned to either Band B, C or even E which shows the signs of policy summersault.
He said the minister and NERC should know that their achievements will not be based on an acclaimed increase in generated megawatts alone but a robust power sector where service delivery is given top-notch attention.
“The objective should not be increasing revenue as a return on investment for the investors alone, but affordable service delivery to consumers,” he said.
