Every Nigerian soon to be migrated to Band A electricity tariffs - FG

The Federal Government has reaffirmed that transitioning Nigeria's electricity market to a fully cost-reflective tariff regime remains official policy, signalling that all electricity consumers will eventually pay rates that reflect the actual cost of power supply.

The clarification was made by the Special Adviser to the President on Power Infrastructure, Sadiq Wanka, who said the current tariff structure is part of a phased reform designed to restore financial sustainability to the country's power sector.

According to Wanka, the introduction of cost-reflective tariffs for Band A customers—who receive premium electricity supply—was only the first stage of the policy, adding that extending the pricing model to other customer bands is now a matter of when, not if.

He explained that the government considers the transition essential to addressing the electricity sector's long-standing funding shortfall, which has continued to undermine power generation, transmission and distribution.

The Presidency also argued that adopting market-based electricity pricing would make the industry more attractive to private investors by creating a more predictable and financially viable operating environment.

Officials maintain that the reform is aimed at reducing dependence on government subsidies while encouraging greater investment in infrastructure capable of improving electricity supply nationwide.

Although no specific timeline was announced for extending cost-reflective tariffs to all customer categories, the government said the policy direction has been firmly established, indicating that broader implementation will follow as sector reforms progress.

The planned expansion is expected to generate fresh debate among consumers and industry stakeholders, particularly as households and businesses continue to grapple with rising living costs and concerns over electricity affordability.