Nigeria’s Power Sector Banding System: Separating Fact From Political Fiction
There’s a narrative going viral online that Nigeria’s service banding system in the electricity sector was created by Adebayo Adelabu. Some individuals want to “cash in on it” politically — but the truth is far more nuanced, and reducing Nigeria’s energy reforms to political banter only deepens public misunderstanding. It’s time to set the record straight with facts, context, and clarity.
Origins of the Power Banding System: What Really Happened
Contrary to what some social media threads and space discussions claim, Nigeria’s banding system in the electricity sector was not introduced by Adebayo Adelabu. The framework long predates his tenure and was introduced by the Nigerian Electricity Regulatory Commission (NERC) on November 1, 2020 as part of a new tariff methodology called the Service‑Based Tariff (SBT). The purpose? To align electricity tariffs with the actual hours of supply delivered to customers — a move aimed at transparency, fairness, and improved service delivery.
Before this scheme, many Nigerians were essentially paying the same flat rate for electricity regardless of the number of hours they received power — whether it was 4 hours or 20 hours in a day. The SBT was meant to change that.
How the Service‑Based Tariff (SBT) Works
Under the SBT regime, customers are grouped into five bands based on the minimum number of hours of electricity supply they receive daily:
Band A: Minimum of 20 hours per day
Band B: Minimum of 16 hours per day
Band C: Minimum of 12 hours per day
Band D: Minimum of 8 hours per day
Band E: Minimum of 4 hours per day
In theory, the longer and more reliable your electricity supply, the higher your tariff — because you’re paying for a better service. The rationale is to encourage investment in the power sector and ensure Distribution Companies (DisCos) are incentivised to improve supply.
The 2024 Tariff Restructuring: What Changed and Why It Matters
Fast forward to April 2024, when the Nigerian electricity sector underwent a major tariff adjustment that sparked nationwide debate. NERC approved a significant increase in tariffs only for Band A customers — those who receive at least 20 hours of electricity daily.
Reports show the tariff for Band A customers was increased from around ₦66 per kilowatt‑hour to roughly ₦225 per kilowatt‑hour — which is more than a 200% surge.
This change was not just a pricing tweak — it fundamentally eliminated electricity subsidies for only the highest‑service customers, with the goal of reducing the massive subsidy burden on government coffers and encouraging cost‑reflective pricing in the sector.
Critics — particularly labour unions, manufacturers, and consumer groups — called the move insensitive and discriminatory, arguing it unfairly targeted urban residents and businesses that already struggle with irregular supply.
Some DisCos later adjusted the tariff slightly downward (to around ₦206.80 per kWh) after the initial increase, but the broader debate remains heated.
Why This Matters Beyond Politics
If we truly want a productive discussion about Nigeria’s power situation, we must focus on systemic challenges rather than political personalities or unfounded claims.
1. Legacy Debts and Subsidies
The Nigerian power sector has long been plagued by subsidy burdens and legacy debts owed to generating companies and gas suppliers. These debts have made it difficult for companies to sustain operations, leading to poor service delivery.
2. Generation vs. Supply
Nigeria’s generation capacity — even with infrastructure improvements — remains far below the country’s population and demand. The reality is that even with tariff reforms, the available generation often cannot meet demand, which directly affects the number of hours customers actually receive. **This has nothing to do with individual politicians, and everything to do with infrastructure gaps.
3. Accountability and Enforcement
A key issue many Nigerians face is simple: Are DisCos delivering the promised hours of electricity? And if they aren’t, are there effective enforcement and compensation mechanisms?
Under the Service‑Based Tariff regime, if a DisCo consistently fails to deliver minimum service levels, regulatory provisions allow for investigation and potential tariff adjustment based on actual supply delivered. Yet many consumers report ongoing discrepancies between bill amounts and actual power supply hours.
Why Misinformation Hurts Everyday Nigerians
When complex policy reforms are reduced to political soundbites or misattributed to individuals, the result isn’t accountability — it’s confusion.
I joined a space last night where commenters reflexively attacked Adebayo Adelabu, claiming he invented the banding system. Many of those people had no first‑hand experience or factual basis for those claims. They were repeating rumours. This kind of discourse distracts from the real issues:
Are consumers receiving what they are billed for?
Are regulatory bodies enforcing performance thresholds?
Is there a transparent grievance system for aggrieved customers?
Focusing on personalities instead of policies and performance metrics makes all Nigerians poorer, not just politically misinformed.
So What’s the Situation Where You Live?
Ask yourself:
📌 Are you receiving the number of power hours your band guarantees?
📌 If not, have you checked your assigned feeder classification?
📌 Have you reported discrepancies to your DisCo or to NERC?
This isn’t about places like Apete, Felele, Soka, Olounsogo, Sanyo or Boluwaji — let’s be honest: we all experience the effects of Nigeria’s power challenges differently depending on our location. But misattribution and political noise shouldn’t be the focus. Real change happens through informed discourse and factual accountability.
Final Thought
Energy reform is not simple, and it cannot be reduced to social media sentiments. Nigeria’s power sector reform — including the SBT and tariff adjustments — is rooted in economic realities, infrastructure constraints, and regulatory intentions to create a more sustainable system. Politics will always influence public perception, but facts should guide the conversation.
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