OGEJOURNAL Menu

Lagos to scrap electricity band system

The Lagos State Government has announced plans to phase out the current electricity band classification system introduced by the Nigerian Electricity Regulatory Commission, in a move aimed at achieving more uniform and reliable power supply across the state.

The band system, rolled out in 2024, groups electricity consumers into categories ranging from Band A to Band E based on the number of hours of electricity they receive and the tariff they pay. Higher bands typically enjoy longer hours of supply but pay closer to the actual cost of electricity, while lower bands receive fewer hours with partial government support.

Officials in Lagos say the classification is no longer aligned with the state’s long-term energy vision. Speaking at a ministerial briefing in Ikeja, the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the government is working toward a system where all residents can access stable and continuous electricity without being divided into supply bands.

He explained that the state’s goal is to move toward a situation where electricity is available consistently, rather than being rationed by hours. He also expressed confidence that Lagos can achieve 24-hour power supply with the ongoing reforms in the energy sector.

The initiative is part of broader reforms under the Lagos Electricity Law 2024, which transferred regulatory oversight of the state electricity market to the Lagos State Electricity Regulatory Commission. The new framework is designed to encourage private investment, improve competition, and strengthen grid reliability.

Governor Babajide Sanwo-Olu has also backed efforts to eliminate the current subsidy-based structure, with officials stating that consumers in the state will eventually pay the full cost of electricity as the market becomes more efficient.

The state is also investing heavily in energy infrastructure, including solar streetlights and renewable systems across public facilities. Thousands of smart solar streetlights have been installed on major roads, while hospitals, schools, and government institutions have received upgraded power systems to improve reliability.

Lagos officials say the long-term plan includes building a decentralised and competitive electricity market that allows direct energy transactions between producers and consumers, reducing reliance on a single buyer model and improving overall supply stability.