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Band A Tariff Has Reduced Govt Payment On Electricity Subsidy From ₦3tr To ₦1tr – Adelabu




Band A Tariff Has Reduced Govt Payment On Electricity Subsidy From ₦3tr To ₦1tr - Adelabu

The Minister of Power, Adebayo Adelabu, has disclosed that the implementation of a higher tariff for band A customers has led to a decrease in electricity subsidy, reducing it from approximately ₦3 trillion to ₦1 trillion.

The Minister made this known on Tuesday in a statement during the public hearing on electricity rates in Abuja.

The public hearing was put together by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation.

According to Adelabu, the government would have had to pay subsidies in the region of ₦3 trillion if the electricity tariff was not increased, but with the increased tariff, the government has devised a system for customers to cover the cost of subsidies in band A.


Meanwhile, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), in a joint National Executive Council meeting last Tuesday, insisted that President Bola Tinubu’s administration must reverse the recent electricity tariff increase and abolish the customer band classification.

A communique from the joint NEC meeting at the NLC’s National Headquarters, held to discuss the federal government’s higher minimum wage proposal, was issued after the successful suspension of the indefinite nationwide strike on Monday.

NLC President, Joe Ajaero and TUC President, Festus Osifo both signed the communique.


The organized labour underscored the importance of reversing the electricity tariff hike and abolishing the discriminatory banding system for electricity consumers as essential measures to ease the financial challenges facing Nigerian workers and the broader society.

The NEC, considered the top decision-making authority within Organized Labor, stressed the necessity of addressing both the electricity tariff hike and discriminatory band classification alongside the wage increase.

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