Concerns are rising among electricity consumers as the Nigerian Electricity Regulatory Commission begins a fresh review of power tariffs across customer bands due to mounting costs in the sector.
Industry discussions indicate that the review is driven by higher expenses in power generation, gas supply, transmission, inflation, and exchange rate pressures affecting electricity operators. Power generation and distribution companies have repeatedly warned that current tariffs no longer reflect the real cost of supplying electricity, leading to financial strain across the value chain.
Nigeria operates a band-based billing system where customers are charged based on the number of electricity supply hours they receive daily. In 2024, Band A customers, expected to get about 20 hours of power each day experienced a major tariff increase, with rates climbing above ₦200 per kilowatt-hour.
While customers in Bands B, C, D, and E have largely remained on older pricing structures, indications suggest the ongoing review may extend adjustments beyond Band A as operators push for cost-reflective pricing.
The tariff assessment is being conducted under the Multi-Year Tariff Order framework, which allows periodic reviews of electricity pricing in response to prevailing economic and operational realities.
The regulator recently introduced new transmission guidelines and revised energy caps for distribution companies in an effort to reduce losses and improve grid efficiency.
However, the possibility of higher tariffs is already creating anxiety for households and small businesses struggling with rising living costs.
With the national minimum wage at ₦70,000 and inflation affecting food, transport, and housing expenses, many Nigerians fear another increase in electricity bills could worsen financial pressure.
Small business owners such as barbers, welders, frozen food sellers, and cyber café operators, who depend heavily on electricity, may face increased operating costs if tariffs are raised again.
Nigeria’s electricity sector continues to face long-standing issues, including limited generation capacity, weak transmission infrastructure, frequent grid disruptions, and revenue collection challenges.
Despite several tariff reviews in recent years, many consumers still complain about inconsistent supply, estimated billing, and poor service delivery.
