Electricity consumers in Lagos State have expressed support for the state government’s proposal to abolish the current electricity band classification system, describing it as unfair and burdensome amid worsening economic conditions.
The consumers, operating under the All Electricity Consumers Protection Forum, criticised electricity distribution companies (DisCos) for opposing the planned reform, insisting that the existing Band A–E structure has become exploitative rather than service-driven.
The debate follows recent remarks by the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, who disclosed at a ministerial briefing in Alausa, Ikeja, that the state government was working towards eliminating electricity banding in favour of a more reliable and continuous power supply framework.
Under the system introduced by the Nigerian Electricity Regulatory Commission (NERC) in April 2024, consumers are grouped into Bands A to E based on daily electricity supply hours. Band A customers, who are expected to receive at least 20 hours of power daily, are charged higher, cost-reflective tariffs, while lower bands benefit from subsidised rates but receive fewer supply hours.
However, DisCos have warned that removing the classification without first addressing Nigeria’s persistent power generation and distribution challenges could destabilise the electricity market and trigger public unrest.
Reacting to the concerns, the National Coordinator of the All Electricity Consumers Protection Forum, Adeola Samuel, accused distribution companies of defending a structure that prioritises revenue over consumer welfare.
He argued that Nigerians have continued to pay higher tariffs without a corresponding improvement in electricity supply, adding that the service-based tariff model has failed to deliver reliable power across many communities.
According to him, “consumers are paying more but still experiencing prolonged blackouts,” noting that even households classified under higher bands continue to suffer inconsistent electricity supply.
Samuel also referenced past legal and civic resistance to tariff adjustments, recalling that consumer groups had challenged earlier increases, including the 2016 tariff review, which was ruled against by the Federal High Court in Ikoyi.
He further stated that opposition also arose during the introduction of the service-based tariff in 2020, saying many Nigerians rejected the policy at the height of the COVID-19 economic downturn.
The consumer advocate maintained that the banding system has deepened inequality, particularly affecting unmetered customers who are subjected to estimated billing. He alleged that DisCos often charge based on projected supply rather than actual electricity delivered.
Samuel also accused electricity distributors of resisting reforms aimed at improving accountability, claiming they benefit significantly from the current tariff structure.
He referenced provisions of the Lagos State electricity framework under the Lagos State Electricity Regulatory Commission (Lagos State Electricity Regulatory Commission), stating that operators are legally required to provide meters before commencing service. He added that failure to comply could attract sanctions under the state law.
Meanwhile, Ogunleye maintained that the state’s long-term goal is to achieve uninterrupted electricity supply rather than operate a segmented banding system.
He questioned the logic behind categorising consumers based on supply hours, arguing that Lagos should instead aim for a stable 24-hour power system.
He said the government believes consistent electricity supply is achievable, stressing that the administration is focused on reforms that will move the state beyond the current band classification model.