Electricity Bands Epidemic in Nigeria: Tariffs Hikes and Consumer Responses

Abstract

The recent energy crisis in Nigeria led to a significant increase in electricity tariffs, introduced as part of a broader strategy to attract investment, enhance energy supply, and meet rising consumer demand. In April 2024, the Federal Government of Nigeria implemented substantial tariff hikes across all electricity bands (A to E), based on daily consumption levels. These increases were justified as necessary to offset escalating production costs and stimulate private sector investment in the power sector. However, the policy sparked widespread concern, particularly among low-income households, who questioned the affordability and fairness of the new pricing structure. This article critically examines the electricity tariff adjustments and the responses of Nigerian consumers. Adopting a qualitative methodology, the study draws on both primary and secondary sources, including interviews, academic literature, internet documents, newspapers, and public commentary. The study reveals that many consumers have responded by seeking alternative energy solutions, such as solar power, while simultaneously voicing strong opposition to the tariff increases. The debate surrounding the policy shift underscores deeper systemic challenges in Nigeria’s energy sector. Rather than focusing solely on tariff adjustments, stakeholders have called for urgent investment in modernising and expanding the national grid to deliver reliable, accessible, and affordable electricity for all Nigerians.