Power Minister blames DisCos for poor electricity supply, hints at tariff review

By Kunle Sanni

Minister of Power Adebayo Adelabu has blamed Nigeria’s persistent electricity challenges on the failure of Distribution Companies (DisCos) to invest in the sector, stating that their reluctance to expand infrastructure has slowed progress.

Speaking at the public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja, Adelabu emphasized that with adequate investment from DisCos, more customers could have been migrated to Band A, which enjoys longer power supply.

“They have refused to invest in this sector. A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A, but it is taking too long,” he said.

Adelabu revealed that President Bola Ahmed Tinubu has approved the NIEP and NIRP in principle, with full ratification expected at the next Federal Executive Council (FEC) meeting on Monday.

“This is a major milestone for the sector, and I can assure you that by next week, it will be approved,” the minister stated.

The policy framework, developed with support from the UK Foreign, Commonwealth & Development Office (FCDO) and the UK Nigeria Infrastructure Advisory Facility (UKNIAF), is expected to reshape Nigeria’s power sector by addressing structural inefficiencies.

Adelabu hinted at a possible restructuring of electricity customer classifications, proposing a three-band system (A, B, and C) instead of the current multi-band framework.

The change aims to reduce tariff differentials and allow customers in lower bands to access more hours of electricity.

Currently, Band A customers, who enjoy about 20 hours of power daily, pay N209 per kilowatt-hour, while Band B customers, with 17 to 18 hours of supply, pay N63 per kilowatt-hour.

Adelabu acknowledged that Band A customers are “better off than when using generators,” adding that the recent migration of some customers to Band A contributed to a 70% increase in power sector revenue, rising from N1.05 trillion in 2023 to N1.7 trillion.

While reaffirming the gradual removal of electricity subsidies, Adelabu suggested that the government may re-evaluate the current tariff structure, though he clarified that this would not immediately lead to a tariff increase.

“I do not deceive myself. The government cannot continue to fund the level of subsidy that our consumption pattern is creating. We have seen an increase in electricity consumption,” he said.

He assured that market liquidity and sector reforms remain a priority, and the government will continue exploring ways to improve service delivery.