Rising Tariffs, Dimming Hopes: Nigeria's Electricity Crisis Deepens Social Divide
.Promises fade for premium-paying 'Band A' consumers
.Millions left in darkness as affordability outweighs access
.Industries, universities, and citizens buckle under crippling power costs
In April 2024, the Nigerian Electricity Regulatory Commission (NERC) approved a staggering hike in electricity prices for 'Band A' consumers—from ₦68/kWh to an eye-watering ₦225/kWh. While later revised to ₦206.8 and later to ₦209.5/kWh, the more than 200% hike stunned homes, businesses, schools, and government offices to their cores.
Band A customers—those who were assured of at least 20 hours of power a day—now pay the highest tariffs in the country. But numerous others are still suffering from irregular power supply, casting serious doubts on the fairness and effectiveness of the tariff system.
Broken Promises, Mounting Bills
Even after shelling out top dollar, most Band A consumers still suffer frequent power outages. "The price is outrageous," grumbled a Lagos small business owner in the Ikeja district. "We don't even have stable electricity. What are we paying for, exactly?"
This was the experience of Lagos State Deputy Governor Obafemi Hamzat, who reported that his household electricity bill rose from ₦2.7 million in March to ₦29 million in April—a mind-boggling 974% jump. He termed the system as "unsustainable," a view which is coming in line with growing public ire for complaining after the presidency critcized it for its planned ₦10 billion solar plant to escape its ₦47 billion annual electricity bill.
A Two-Tier System: Light for the Rich, Darkness for the Poor
Distribution Companies (Discos) have prioritized Band A areas, creating what critics call "electricity elitism"—a system where only the rich get light, and the rest remain in protracted darkness. Discos rationalize that wealthier customers pay more to fund infrastructure improvements, but most view it as economic segregation.
If two of Nigeria's richest institutions, the presidency and the Lagos State government, are complaining that these tariffs cannot be sustained, what chance in heaven's name is there, pray tell, for the man in the street? wrote public affairs commentator Ikechukwu Amaechi in an opinion piece entitled The Fraud Called 'Band A' Electricity Tariff.
For vendors like Jumoke Ojo, a frozen foods dealer in Igando, the impact is devastating. "We're not on Band A, so we hardly get power. I use my generator every day just to keep my products fresh," she said.
The Manufacturing Sector on the Brink
The sector of manufacturing has also been severely affected. Manufacturers, the Manufacturers Association of Nigeria (MAN) reports, spent ₦1.11 trillion on other sources of power in 2024, a 42% increase from 2023.
While power supply marginally improved—from 11.4 hours per day in H1 2024 to 15.2 hours in H2—producers still had to contend with constant grid collapses and rising costs. "We had 12 grid collapses in one year," MAN Director-General Segun Ajayi-Kadir explained in the association's 2024 economic review. "The combination of unreliable supply and stratospheric tariffs has immobilized production lines, raised costs, and fueled inflation."
A Promise Betrayed?
The government argues that the new tariff system is required to attract private investment and revamp the power sector. However, for millions of Nigerians, the argument rings hollow as they continue to live in the dark—literally and symbolically.
President Bola Tinubu, who during his 2023 campaign promised to improve access to power throughout the nation, now faces mounting disillusionment. The majority of Nigerians believe recent reforms cater to profit rather than public interest.
Electricity as a Luxury Rather Than a Right
Electricity in Nigeria today is a luxury commodity rather than a fundamental service. The better-off enjoy relative comfort, while millions suffer from unreliable supply, expensive self-generation, and declining standards of living.
"This administration is a betrayal of national justice," Amaechi warned. "Even President Tinubu knows this. That's why Aso Rock is going solar. But what about the common man who can't even afford to install solar?" The Band A system must be brought down—it's a people's crime."
Unless the electricity sector is transformed to prioritize inclusivity over profit, Nigeria risks solidifying a new era of energy apartheid—one in which light is reserved for the privileged few, and the rest are left in the dark.