The Federal Government has revealed that some rural communities in Nigeria are paying higher electricity tariffs than urban Band A consumers, despite enjoying a more stable power supply.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu made this known on Monday while speaking on Channels Television’s The Morning Brief programme.
“There are communities, there are rural areas that pay more tariffs than Band A customers. There are areas where the tariff is close to N250 and N280,” Aliyu said.
The REA boss said the electricity tariff paid by rural communities largely depended on the total cost of infrastructure deployed by his agency.
“They pay for their electricity, and they enjoy it, but there are other areas where the tariff is less than Band A. It’s subjective on the total cost of infrastructure we deploy within those communities,” he said, adding that his agency explores solar energy as an economically viable model for power generation to rural communities.
He said the agency has completed scores of mini-grids and interconnected mini-grids for universities and general hospitals across the six geopolitical zones of the country.
Nigeria has faced intractable energy challenges, no thanks to an epileptic power supply, which significantly affects productivity levels.
Despite the privatisation of the electricity sector, power generation, transmission and distribution have remained bogged with hydra-headed monsters of policy inconsistency, low investments and operational challenges.
In 2024, the Nigerian Electricity Regulatory Commission (NERC) approved the upward review of electricity prices.
The increase saw electricity customers pay N225 kilowatt per hour from N66, a development that was heavily criticised by many Nigerians, considering the immediacy of the tariff hike and the current hardship in the land.
The cost of petrol and diesel, which are readily available alternatives, has increased by fivefold, compounding the dilemma of consumers.
In April, energy analyst and media executive, Ikechukwu Amaechi, raised concerns over the integrity of Nigeria’s electricity banding system, describing the much-publicised “Band A” classification as a scam that does not deliver on its promises.
His comments come amid growing discontent among Nigerian consumers, particularly those in the Band A category, over what many describe as unjustified electricity tariff hikes without a corresponding improvement in supply.
Under the current tariff structure approved by the NERC, Band A customers are expected to receive a minimum of 20 hours of power supply per day.