“The migration to Band A should have been faster, but we found out that the DisCos refuse to invest. They have refused to invest in this sector.”

The Federal Government has announced plans to review electricity tariffs for Band B and C customers as part of efforts to improve the power sector and encourage investment.

Minister of Power, Adebayo Adelabu, made this revelation during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan on Thursday in Abuja.

Adelabu clarified that the review does not necessarily mean an increase in tariffs but rather an assessment to enhance last year’s progress and ensure the sector’s growth.

He stated that the government aims to invest in upgrading the country’s dilapidated power infrastructure.

He also expressed concern over the slow migration of customers to Band A, attributing the delay to the lack of investment from electricity distribution companies (DisCos).

Adelabu said, “We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted.

“We are going to look at it and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but also to ensure that we can invest more in revamping all these dilapidated infrastructures.”

• “The migration to Band A should have been faster, but we found out that the DisCos refuse to invest. 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. It is taking a lot of time.”The Federal Government has officially announced its intentions to undertake a comprehensive review of electricity tariffs specifically for customers classified under Band B and Band C. This initiative is part of a broader strategy aimed at bolstering the power sector and creating an attractive environment for more investments. The announcement was made by Adebayo Adelabu, the Minister of Power, during a public event in Abuja unveiling the National Integrated Electricity Policy and Nigeria Integrated Resource Plan.

Minister Adelabu made it clear that the review’s primary purpose is not necessarily to lead to an increase in electricity tariffs. Instead, it revolves around reevaluating the current tariff structures to enhance last year’s accomplishments and foster the continued growth of the power sector. A critical focus of the government is to channel investments into upgrading the country’s aging and inadequate power infrastructure, which is seen as a key obstacle to efficient service delivery.

Additionally, Adelabu expressed concerns regarding the sluggish migration of customers to the higher-quality Band A services.

He attributed this stagnation to the inertia of electricity distribution companies, known as DisCos, which have shown reluctance in making the necessary investments.

He emphasized the need for substantial investment to expedite the transition of lower-band customers to Band A, noting that the process has been prolonged due to the DisCos’ lack of action.

Adelabu underscored the urgency, explaining that significant financial input is crucial for achieving a swift and efficient reclassification of customer to better service bands.