Adebayo Adelabu, Nigeria’s Minister of Power, has defended the current electricity tariff of N209/kWh for Band A customers, stating that it is far more reasonable than the costs of using petrol or diesel. According to him, generating power with diesel costs approximately N950 per kilowatt-hour, while using petrol costs around N750/kWh. These figures make the N209/kWh paid by Band A consumers more affordable by comparison.
Speaking at a recent event in Lagos, Adelabu addressed concerns raised by customers about the Band A tariff, noting that the cost of electricity from the grid remains significantly cheaper than the cost of generating power individually through fuel-powered generators.
The minister also responded to claims that the increased revenue for power distribution companies (Discos) was an added burden on consumers. He clarified that the shift in spending is simply a reallocation of funds from what customers used to spend on fuel for generators. “It is not an additional burden. It is a reallocation of resources from petrol and diesel to a better, more reliable power supply,” Adelabu explained.
In 2023, the power sector generated N1 trillion in revenue, while the cost of petrol and diesel for powering generators reached N16.5 trillion. Now, with more stable electricity supply, customers are spending less on fuel and paying a more cost-effective tariff of N209/kWh, which remains far cheaper than generating power using petrol or diesel.
Adelabu urged electricity consumers to support ongoing reforms in the power sector, stressing that it would ensure sustainability and prevent a return to widespread reliance on fuel generators. He also reassured Nigerians of the government’s commitment to boosting power generation to 6,000 megawatts by the end of the year, though persistent grid collapses remain a challenge to this target.
