Electricity consumers in Lagos have backed the state government’s planned phase-out of electricity band classification, describing the current Band A tariff regime as exploitative and insensitive to Nigerians facing worsening economic hardship.
The consumers, under the aegis of the All Electricity Consumers Protection Forum, reacted to concerns raised by electricity distribution companies over the Lagos State Government’s proposal to abolish electricity customer banding in the state.
The debate followed comments by the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, who said during a ministerial press briefing in Alausa, Ikeja, that the government was working towards eliminating electricity band classification and ensuring stable electricity supply for all residents.
In April 2024, the Nigerian Electricity Regulatory Commission introduced a classification system that grouped electricity consumers into Bands A to E based on the number of hours of electricity supplied daily.
Under the arrangement, Band A customers, expected to receive a minimum of 20 hours of electricity supply daily, pay cost-reflective tariffs, while customers in lower bands continue to receive subsidies with fewer supply hours.
However, some electricity distribution companies faulted the Lagos proposal, warning that scrapping the classification system without improving electricity generation and supply could lead to protests and instability within the power sector.
Reacting to the concerns, the National Coordinator of the All Electricity Consumers Protection Forum, Adeola Samuel, accused the DisCos of defending a system that benefits operators more than consumers.
“It is quite disingenuous for the DisCos to suggest that consumers will protest against the removal of the electricity band classification. Nigerians have endured years of exploitative billing under the band system, and many consumers see it as a framework designed mainly to enrich operators,” he said.
Samuel argued that the service-based tariff system introduced by regulators had failed to deliver improved electricity supply despite repeated tariff increases.
“The reality is that consumers are paying more without enjoying commensurate improvement in power supply. What we have seen over the years is a continuous increase in tariffs without stable electricity. Many households are still suffering blackouts despite being placed on higher bands,” he stated.
He recalled that consumer groups previously challenged electricity tariff increases in court, including the 2016 cost-based tariff increase, which was later declared illegal by the Federal High Court in Ikoyi.
According to him, consumers also resisted the introduction of service-based tariffs during the COVID-19 lockdown in 2020 due to the economic hardship experienced at the time.
Samuel maintained that the current banding framework had failed to address Nigeria’s electricity challenges and had instead worsened the burden on consumers, especially unmetered customers.
“The band system allows DisCos to charge consumers based on projected supply hours even when many customers do not receive up to a quarter of the promised electricity. Those on estimated billing suffer the most because there is hardly any effective mechanism to verify actual supply,” he said.
He further accused electricity distribution companies of resisting reforms that could reduce their earnings under the present tariff structure.
“I can boldly say that the DisCos are fighting for the continuation of a system that has become a cash cow for them, not necessarily for the benefit of consumers,” Samuel added.
The consumer advocate also pointed to provisions in the Lagos electricity law, which place stronger obligations on operators regarding metering and consumer protection.
According to him, electricity distribution companies registered with the Lagos State Electricity Regulatory Commission are expected to meter customers before providing service.
“Under the Lagos electricity law, operators are expected to meter customers before rendering service. That responsibility should not be shifted to consumers again,” he said.
Samuel added that many electricity consumers considered Band A billing unfair because they allegedly do not receive the minimum electricity supply hours attached to the tariff category.
“Many consumers see the band classification system as fraudulent and insensitive because people are paying huge tariffs without getting value for their money. Supply has not improved in many areas despite the higher charges,” he added.
He urged the Lagos State Electricity Regulatory Commission to proceed with the proposed reforms, saying the removal of the banding system would provide relief to households across the state if properly implemented.
Speaking earlier, Ogunleye said the Lagos State Government was focused on achieving uninterrupted electricity supply rather than maintaining a framework built around supply bands.
“Banding says that you have 3, 8, 12, or 21 hours of electricity. What we are saying is, is it impossible to have a continuous power supply?” the commissioner said.
He added that the state government believes a 24-hour electricity supply is achievable in Lagos.
