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Following public outcry, mostly from the members of the Organised Private Sector (OPS), Civil Society Groups, and Nigerians at large, there are strong indications that the National Assembly (NASS) may scrap the Nigerian Electricity Regulatory Commission (NERC)’s introduced electricity tariffs categories- Band A, B, C, and D in the ongoing review of the 2023 Electricity Act over its unconstitutionality, Sunday Telegraph has learnt.
Indeed, this may be a cheering news for many Nigerians at home, including manufacturing companies that have been grappling with high electricity tariffs, paying as high as 250 per cent increase on a monthly basis following the Federal Government’s warning of its intention to totally remove subsidy payments on electricity consumption in the country amidst the high burden risks they are posing on running day-to-day operations in the country’s power sector.
Particularly, Sunday Telegraph reliably gathered from some lawmakers in the National Assembly (NASS) that the ongoing amendment of the 2023 Electricity Act in NASS would witness the cancellation of Band A, B, C, and D, (electricity tariffs) introduced by NERC as NASS plans to recommend the creation of a National Electric Power Policy Council to oversee high-level policy alignments in the country, by tackling most of the 90 per cent problems in the nation’s power sector.
In addition, the upward review of electricity tariff adjustment under the Multi-Year Tariff Order (MYTO) implemented in June 2025, triggered consumer dissatisfaction, notably as service quality has not improved proportionally.
Specifically, the 2023 Electricity Act granted states power to regulate power generation, transmission and distribution. But the recent conflict of interest between NERC and Enugu State over unauthorised electricity tariff reduction in the state, has shown that there is an urgent need to review the 2023 Act to bring the federal and state harmonisation framework in the country’s power sector in the long term.
It could be recalled that since the introduction of Band A, B, C and D by NERC as electricity tariffs for Nigerians, the situation in the country’s power sector has worsened more and escalated, especially on the Band A, with public outcry mostly from the private sector group, civil society organisations, manufacturing sector and Nigerians on the high energy cost payment that has seen conglomerate companies and some apartments paying hefty amount for electricity consumption as high as 250 per cent per month and then eroding on people’s purchasing power and profitability.
Speaking under the condition of anonymity, a lawmaker in NASS, confided to Sunday Telegraph, that NASS is taking the ongoing amendment of the 2023 Act very seriously in the 2023 Electricity Bill Act by reviewing the various conflicts of interests rocking the nation’s power sector and at the same time, challenges posing risk to the sustainability of electricity supply in the country, like evaluating the framework for subsidy under P-CAF (Power Consumer Assistance Fund), Urbanised un-fragmented regulation under the federal and state governments harmonisation framework, multiple electricity tariffs, issues of transmission, generation, and distribution, electricity pricing and other challenges in the country’s power sector with-a-view to get it right this time.
The lawmaker said: “We are going to review the issues surrounding electricity tariffs category like Band A, B, C and D introduced by NERC because, we have been inundated with many petitions, letters, emails, request on the issue from different spheres of life as it affects Nigerians, manufacturing sector, other key sectors of the economy and even we, the legislators in the National Assembly, even though, we know it’s not (electricity tariffs category) in our power sector reform Act that was passed into law.
We know that the ongoing amendment of the 2023 electricity bill Act signed into law by President Bola Tinubu on assumption of Office is generating lots of conflicts in the country and we are currently reviewing it in the National Assembly with the 2025 electricity bill Act, which will be the last hope for every common Nigerian as we hope to come out with a policy blueprint for our power sector reform Act that will enshrine stability and sustainability in our electricity sector.”
While speaking on the NERC and Enugu state government brawl over electricity tariff pricing reduction from the weighted average wholesale price of N112 to N45 adjustment, leaving a shortfall of N69 amidst government’s subsidy payments for electricity consumption for Nigerians, the former Chairman and Chief Executive NERC, Associate Professor and Coordinator Abuja School of Political and Social Thought, Dr. Sam Amadi, rose to the support of the Enugu State’s Power Regulator for taking bold steps to reduce electricity tariff payments for its citizens, thereby challenging NERC too to also thread same path and reduce electricity tariffs for Nigerians by alleviating their suffering.
Amadi, who is also the Director, Centre for Public Policy & Research- Harvard Kennedy School, declared NERC’s electricity tariffs; Band A, B, C and D as unconstitutional and void, that must be reversed and scrapped by government with immediate effect.
He said: “It has been contagious for the different states to say and do it rightly. Yes, Enugu State has done what NERC cannot do. It has reduced the tariffs for its citizens, people are happy. So, NERC can do the same or look at copying Enugu State mythology by reducing electric tariffs for Nigerians since the Federal Government is still paying subsidy for power supply.
“So, there is need for the power ministry to do two things; one get energy experts, not those ones, who are very close to the Ministry and what-a-view and carefully study the Enugu State method and can’t we do it and replicate it nationwide for Nigerians?”
Amadi added, “When I was the NERC chairman in 2015, I was abused and the same people saying I want to help PDP to win elections.
“When I said let’s zero out the collection losses because we can’t just have a tariff that is increased by 200 or 250 per cent. It is ridiculous, shocking and absurd in this industry.
“And I said when you put your collection at zero, you come and prove to us that each of your elements that you claimed are right of cogent budget approvals.
“If they had allowed me, if it wasn’t politics, I would have gone ahead and do it. Then we won’t be talking about this tariff crisis now.”
Dr. Amadi continued: “Sometimes, it baffles me looking at the high level of inefficiencies by the DISCOs getting into their models, except because you want to gang up against me, seeing Nigerian customers paying for inefficient cost price for electricity in Nigeria.
“So, as an ordinary Nigerian, customers should pay for only efficient price, which is the actual cost that is, efficiently incurred to serve customers.”
“DISCO should also run efficient cost that was incurred efficiently, not the one they will carry on their own losses and distribute it to the consumers because they are being subsidised by the government.
“Sometimes, when I see the figures in the bills the DISCOs are giving Nigerian consumers, it is really crazy,” he said.
