The Federal Government has announced plans to review electricity tariffs to address pricing disparities and encourage investment in the power sector.

Minister of Power, Adebayo Adelabu, disclosed this during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan on Thursday in Abuja. He noted that the slow migration to Band A is due to the reluctance of Distribution Companies (DisCos) to invest in necessary infrastructure.

Under the current tariff structure, Band B customers, who receive 17-18 hours of electricity, pay ₦63 per kilowatt-hour, while Band A customers, receiving just two extra hours, pay ₦209 per kilowatt-hour. Adelabu described this price gap as unfair and emphasized the need for a more balanced and equitable pricing system.

To address this, the government is considering restructuring tariff bands to reduce the wide gap between them, encourage faster migration of lower-band customers to Band A, and ensure more investment in upgrading dilapidated infrastructure.

“The gap between the Band A tariffs and Bands B, C, D, and E is too wide,” Adelabu said. “We believe it’s not fair. It is not just, and we must carry out some level of regularisation.”

He clarified that while a tariff review is being considered, it does not necessarily mean an immediate increase in rates.