Nigeria’s electricity tariff band system under the Nigerian Electricity Regulatory Commission (NERC) is reportedly breaking down as actual power supply in major cities falls far below official expectations, leaving consumers paying higher tariffs for significantly reduced service.
Investigations show that electricity supply across key urban centres such as Lagos, Abuja, Port Harcourt, and Calabar is now consistently below the minimum hours required under the Band A–E classification system, which was introduced to reflect different levels of service delivery.
Under the framework, Band A customers are supposed to receive at least 20 hours of electricity daily, Band B 16 hours, Band C 12 hours, while Bands D and E are allocated 8 hours and 4 hours respectively. However, consumer experiences indicate a wide gap between policy targets and actual supply.
Industry observers say many feeders initially classified as Band A may have been downgraded due to the inability of Electricity Distribution Companies (DisCos) to meet required supply thresholds, although such changes have not been clearly communicated to the public.
This lack of transparency has left many customers uncertain about their actual tariff classification and what level of service they are entitled to receive.
Policy experts have also criticised the band system, describing it as an inadequate solution to deeper structural problems in the power sector, including aging infrastructure, high technical and commercial losses, widespread metering gaps, and weak investment incentives.
They further note that issues such as gas supply constraints, pricing distortions, and liquidity challenges within the electricity market continue to undermine reliable power generation and distribution.
Some stakeholders warn that inefficiencies in the sector are forcing businesses and households to rely heavily on generators, significantly increasing diesel and petrol consumption and contributing to higher production costs and inflationary pressure.
There are also ongoing discussions within the National Assembly about potential reforms, including proposals that could lead to a re-evaluation or restructuring of electricity distribution companies if performance does not improve under proposed legislative amendments.
Regulatory provisions by NERC state that feeders failing to meet Band A supply standards for consecutive periods should be downgraded, with affected customers entitled to compensation or credit adjustments. The regulator also has enforcement powers, including fines and mandatory refunds for non-compliant DisCos.
Despite these measures, stakeholders say enforcement remains inconsistent, and service delivery continues to fall short of expectations, raising concerns about the effectiveness of the current electricity reform framework.
Overall, experts warn that persistent instability in electricity supply is harming economic productivity, discouraging investment, and increasing the cost of doing business across Nigeria.
