ABUJA – Small business owners and civil society organizations (CSOs) have strongly opposed the Federal Government’s proposed electricity tariff hike, warning that it could cripple small enterprises and worsen economic hardship.
The government, through the Minister of Power, Chief Adebayo Adelabu, announced plans to review electricity tariffs for non-Band-A customers to address the financial instability of the Nigerian Electricity Supply Industry (NESI). Speaking at the public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja, Adelabu cited the unsustainable N3 trillion power sector subsidy and a rising N4 trillion debt owed to power generation companies (GenCos) as key concerns.
Tariff Review Under Consideration
Adelabu clarified that while the government is reassessing tariffs, there is no immediate decision on an increase. “The key issue in the market is illiquidity, and sector reforms will continue to focus on that. We will look at the tariff again—not just to grow sector revenue, but also to invest in revamping dilapidated infrastructure and ensuring more reliable electricity,” he stated.
He noted that Band-B customers, who receive approximately 18 hours of electricity daily and pay N63/kW, now face a widening cost gap compared to Band-A customers. He emphasized the need for infrastructure investments, estimating that the power sector requires $29.23 billion by 2035 and up to $122 billion by 2045 to achieve stability and expansion.
Business Owners, Civil Societies Push Back
Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), warned that any further tariff hike would devastate micro and small businesses. “Most SMEs depend on government-supplied electricity. A tariff increase will escalate production costs, drive inflation, and force many businesses to shut down,” he cautioned.
Education Rights Campaign (ERC) also rejected the proposal, vowing nationwide protests if implemented. ERC’s National Coordinator, Hassan Taiwo, argued that power supply remains unreliable, citing frequent national grid collapses. “Electricity bills already take a significant portion of people’s income, and businesses are folding up due to high costs. Another tariff hike risks shutting down the economy,” he said.
The Movement for Socialist Alternative (MSA) described the Band-A tariff model as “discriminatory” and accused power distribution companies (DisCos) of prioritizing profit over service. MSA’s General Secretary, Dagga Tolar, called for renationalization of the electricity sector, urging labor unions to resist the hike through mass mobilization and strikes.
NERC Unveils Consumer Bill of Rights
In response to growing consumer concerns, the Nigerian Electricity Regulatory Commission (NERC) has introduced a Customer Bill of Rights and Obligations to enhance transparency and protect consumers within the NESI. The bill outlines customer entitlements, including clear information on tariffs, service terms, and complaint resolution mechanisms.
NERC also stressed the need for timely bill payments and compliance with electricity safety regulations. Customers were advised to notify DisCos when vacating or occupying properties to prevent liability for outstanding bills.
With electricity costs rising and economic pressures mounting, the proposed tariff review has ignited a fresh debate on Nigeria’s power sector policies, leaving many stakeholders on edge over the future of energy pricing in the country.
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