The Lagos State Government has announced plans to eliminate the Band A–E electricity classification system introduced by the Nigerian Electricity Regulatory Commission in 2024. The move is aimed at ensuring a unified and uninterrupted 24-hour electricity supply across the state.
Commissioner Announces Unified Power Supply Plan
Commissioner for Energy and Mineral Resources, Biodun Ogunleye, revealed that the state is working to establish a system where banding will no longer exist. He stated that residents will no longer be categorized based on the number of hours of electricity they receive daily.
Ogunleye emphasized that Governor Babajide Sanwo-Olu has directed stakeholders to find a solution for round-the-clock power supply for Lagos, which is Africa's largest city and Nigeria's commercial hub. The commissioner expressed confidence that achieving 24-hour electricity is possible, citing previous successes in the city.
Reforms Under Lagos State Electricity Regulatory Commission
The creation of the Lagos State Electricity Regulatory Commission has empowered the state to regulate its electricity sector independently. This enables faster reforms, including infrastructure upgrades, solar energy deployment, and private-sector-driven market changes. The state has already expanded solar infrastructure for public utilities.
Background on Electricity Band System
Nigeria currently uses a band-based tariff system where consumers pay according to the average daily hours of electricity supply. While Band A customers faced recent tariff reviews, Bands B, C, D, and E were exempted. However, industry discussions suggest the regulator may widen tariff reviews beyond Band A.
The federal government had earlier indicated plans to review electricity tariffs across all bands due to rising operational costs, sparking concerns among consumers already grappling with inflation and unreliable power supply. NERC assured that any adjustments would prioritize better service and customer rights.
