Nigeria’s Power Crisis Deepens Despite 300% Tariff Hike as Consumers Pay More for Poor Supply
Two years after Nigeria introduced the controversial Band A electricity tariff system, many consumers say they are paying significantly more for electricity without seeing meaningful improvement in power supply. The tariff adjustment, which raised electricity costs by over 300 per cent for premium users, was expected to improve service delivery and strengthen the country’s struggling power sector. Instead, residents across several states continue to battle daily blackouts, unstable voltage and rising electricity bills.
The tariff regime, introduced under the Nigerian Electricity Regulatory Commission’s service-based pricing model, moved Band A customers away from government subsidies and increased electricity rates from about N68 to over N230 per kilowatt-hour. Since then, Nigerians have reportedly paid an additional N2 trillion in tariffs, while power distribution companies also secured over N500 billion from the capital market to improve infrastructure. However, electricity generation has remained largely stagnant at about 4,200 megawatts, leaving distribution companies to ration limited supply across the country.
In Lagos, Abuja, Osogbo, Ede and Port Harcourt, many residents say the promised minimum 20-hour daily electricity supply for Band A customers exists mostly on paper. Consumers complained that despite paying premium rates, they still experience long outages and poor service. Some residents disclosed that they receive barely 10 to 12 hours of electricity daily, forcing families and businesses to spend heavily on fuel for generators. In Abuja’s Sun City Estate, some households said they now spend as much as N70,000 weekly on fuel due to unreliable power supply.
Concerns have also grown over plans by the Lagos State Government to operate a fully commercial and subsidy-free electricity market under the Electricity Act. While state officials insist the move will attract investment and improve efficiency, many Nigerians fear it could lead to even higher electricity tariffs. Reports released by the Lagos State Electricity Regulatory Commission revealed that some electricity providers failed to meet the minimum service levels required under the Band A framework, despite charging customers premium rates. The commission described the situation as a major consumer protection issue.
Stakeholders in the power sector remain divided over the effectiveness of the tariff system. Consumer protection groups accused regulators and distribution companies of prioritising revenue generation over service delivery, arguing that Nigerians are being exploited during a difficult economic period. However, electricity distributors blamed the poor supply situation on gas shortages, low generation and national grid constraints. Energy experts have now warned that unless Nigeria urgently improves generation capacity, infrastructure and market transparency, the country’s electricity crisis could worsen further, leaving consumers trapped in a cycle of rising bills and declining service.
source: The Guardian