The federal government's decision in April 2024 to raise electricity tariffs for Band A customers, with the assurance of at least 20 hours of electricity daily and the potential revival of the debt-ridden power sector, appears to have fallen short of its objectives. Two years later, customers in Band A are paying substantially more for electricity but are still experiencing significant power outages, leaving them in the dark.
Despite government claims attributing low supply to gas producers' indebtedness, the Minister of Power, Adebayo Adelabu, had justified the tariff hike from N68 to N225 per kilowatt-hour for approximately 15% of electricity consumers. He argued that the increase was necessary to prevent the sector's collapse and attract investment.
"The entire sector will be grounded if we don’t increase the tariff. With what we have now in the next three months, the entire country will be in darkness if we don’t increase tariffs," Adelabu had stated, emphasizing the need for commercial pricing to attract investors.
However, the reality on the ground paints a different picture. Salisu Adam, a business owner in Abuja, reported a massive jump in his company's monthly electricity bill from N4 million to N25 million after the tariff increase. Despite this, power supply has dwindled, forcing his company to spend more on diesel generators.
"We wrote to the Abuja Electricity Distribution Company (AEDC) to remove us from the band as we were only paying for the services they did not provide, but the request was turned down. The minister had claimed that Band A customers would pay less for diesel due the availability of the minimum amount of electricity, but it is all a lie," Adam lamented.
Rasheeda Dahiru, who runs a restaurant in Maitama, Abuja, also expressed her distress. She stated that her business rarely receives six hours of supply daily, compelling her to rely on generators and reduce her staff to manage costs.
"The Band A service is nothing but an illusion, and the government is not saying anything on how to remedy the situation for customers. We don’t get this power but pay, and no one is talking about refunds," she said.
Daniel Oguche, from Mabushi, Abuja, noted that his area, recently upgraded to Band A, now experiences worse supply than before, leading to significant business losses.
In Kano, residents voiced similar frustrations. Muhammad Kabiru of Naibawa Quarters receives only about six hours of electricity daily, contrary to the promised 20 hours. Aisha Abdullahi, a small business owner in Rijiyar Zaki, found her frozen food business crippled by erratic supply, forcing heavy reliance on generators.
Sani Usman, a tailor in Sharada Quarters, reported that the poor supply is impacting his ability to meet customer demands. Residents in Kano are urging the electricity distribution company to address the situation and provide service commensurate with the higher tariffs.
Residents in Kaduna also reported poor and irregular supply despite being on Band A. Abdulganiyu Alabi from Kurmin Mashi stated they receive less than five hours of electricity daily and have seen no improvement despite numerous complaints.
Mustapha Baban Sultan, from Millenium City Estate, Kaduna, highlighted the exorbitant cost of Band A tariffs (over N200 per unit compared to N54 previously) with minimal power supply, forcing him to spend significantly on managing power.
In Ilorin, Kwara State, Jimoh Sule from Irewolede described the Band A classification as ineffective, with supply dropping to less than six hours daily, and units being consumed at an alarming rate.
Azeez Aro, a business operator in GRA, Ilorin, called the situation unacceptable, stating that the cost of diesel for generators has skyrocketed, impacting business operations severely.
Customers in Yenagoa, Bayelsa State, and Port Harcourt, Rivers State, also reported that the Band A "federal light" is not providing stable power. Nkechi Kingsley in Yenagoa lamented needing to buy fuel for generators for her salon, despite paying for Band A service.
Chukwuka Emeka, a supermarket owner in Port Harcourt, noted a significant drop in Band A supply, forcing him to use diesel generators and warning that the increased operational costs might be passed on to consumers.
Malam Usaini Ibrahim in Jos reported a drop in electricity supply, impacting his photography business, while Hamza Musa, a laundry owner, cited the power drop as a threat to his business operations.
Energy experts and consumer advocates argue that instead of downgrading customers, the Nigerian Electricity Regulatory Commission (NERC) should emphasize compensation for unsupplied electricity. Energy consultant Odion Omonfoman stressed the need for refunds or credits for electricity paid for but not consumed.
"They still paid for Band A service. If you didn’t get Band A service they should get a refund. There should be a refund mechanism or a way to credit them with additional electricity token rather than assume that the power they didn’t get is consumed under Band A when they didn’t get the service," Omonfoman stated.
Lawyer Bode Fadipe noted that customers not receiving the minimum supply should not be billed on a Band A basis, suggesting automatic downgrading or tariff adjustments.
Uket Obonga, national secretary of the Nigeria Electricity Consumers Advocacy Network (NECAN), lamented that DisCos are not engaging in consumer education regarding compensation, leaving many unaware of their rights.
Meanwhile, the chief technical adviser to the Minister of Power, Adebayo Olowoniyi, stated that electricity supply is expected to improve within two weeks as maintenance on a major gas pipeline nears completion. He explained that the current crisis was largely due to disruptions in gas supply to power plants, which are 75% dependent on gas.
Minister of Power Adebayo Adelabu had previously apologized for the persistent power outages, attributing them to factors beyond immediate control and promising improvements within two weeks. He reiterated the government's target of increasing electricity generation to 6,000 megawatts by the end of 2026.
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