Lagos Govt Makes Move to End Electricity Band Categories
- The Lagos State Government plans to scrap the Band A–E electricity classification introduced by the Nigerian Electricity Regulatory Commission in 2024, aiming for a unified supply system.
- Commissioner Biodun Ogunleye said Lagos is targeting uninterrupted 24-hour electricity and wants to eliminate the need for banding.
- The state is expanding power reforms under the Lagos State Electricity Regulatory Commission, including infrastructure upgrades, solar deployment, and private-sector-driven market reforms.
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Lagos state government has announced plans that it was working to eliminate Nigeria's classification system of electricity bands with the intention of ensuring the whole state gets a continuous 24-hour electricity supply.
Source: Getty Images
Nigeria employs a band-based system where electricity consumers are charged according to the average number of hours of electricity supply they receive daily.
While Bands B, C, D and E customers were exempted from the previous review and have continued to pay under existing tariffs, fresh industry discussions suggest that the regulator may widen the scope of the electricity tariff review beyond current Band A customers.
24-hour power supply
Biodun Ogunleye, the Commissioner for Energy and Mineral Resources, told journalists that the state government was in the process of setting up a structure to guarantee a reliable electricity supply for all Lagosians without classification.
He said:
“One of the things we want to establish is a system whereby there is no banding.
"You will see from the plan that the issue of bands-you get this many hours of power, you get that many hours of power-will become a thing of the past."
Source: Getty Images
Ogunleye added that Governor Babajide Sanwo-Olu had mandated stakeholders to seek a 24-hour supply solution for the Nigerian city, the largest in Africa and also the commercial nerve centre, Punch reports.
The commissioner added:
“I am sure it can be achieved; we have seen it done before in this city. So we are not focusing our attention on any banding."
He said that the establishment of the Lagos State Electricity Regulatory Commission has now allowed the state government the capacity to regulate its electricity sector and fast-track reforms geared towards a stable supply, as well as encouraging investment.
The commissioner pointed out that as part of the ongoing upgrades in infrastructure in Lagos, the state has successfully rolled out more solar infrastructure to its public utilities across the state.
FG plans electricity tarrif increase again
Earlier, Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) indicated it is reviewing electricity tariffs across all customer bands due to increasing operational costs in the sector.
The development has come as a concern among electricity consumers who are already battling increasing costs of living, inflation and a persistent epileptic power supply in the country.
NERC assured electricity consumers that any tariff adjustment planned is for better electricity service and customer rights.
Source: Legit.ng
