FG Set to Review Electricity Tariffs for Non-Band A Customers Amid Rising Sector Costs

FG Set to Review Electricity Tariffs for Non-Band A Customers Amid Rising Sector Costs

The Federal Government has disclosed plans to reassess electricity tariffs for consumers outside Band A, with the goal of aligning their rates closer to the ₦206/kW currently paid by Band A customers.

This was revealed by the Minister of Power, Chief Adebayo Adelabu, during the public presentation of the National Integrated Electricity Policy (NIEP) and the Nigeria Integrated Resource Plan (NIRP) held in Abuja.

Adelabu explained that the government can no longer sustain the ₦3 trillion subsidy burden placed on the power sector. He highlighted that with power generation and distribution improving by approximately 35% in 2024, it is critical to ensure the sector’s financial sustainability for future development.

“We will definitely review the tariff, not necessarily to increase it immediately, but to evaluate how we can build on the progress made in the past year. This is essential to expand the sector and invest in fixing the aging infrastructure,” the minister clarified.