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Manufacturers Association Urges FG to Scrap Electricity Band System

The system has faced widespread criticism due to electricity distribution companies’ failure to meet supply targets

Promise Eze by Promise Eze
January 4, 2025
in National
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  • MAN’s Director-General, Segun Ajayi-Kadri, argued that the band structure unfairly categorises residents without considering their income levels, household needs, or capacity

The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to abolish the current electricity band system, describing it as discriminatory and unjust.

Under the band system, electricity consumers are divided into Bands A to E, each receiving different hours of power supply and charged varying rates. Band A consumers enjoy 20 hours of electricity daily, Band B receives 16 hours, Band C gets 12 hours, Band D has eight hours, and Band E endures just four hours per day.

The system has faced widespread criticism due to electricity distribution companies’ failure to meet supply targets, leaving many Nigerians dissatisfied with high tariffs.

Speaking to Punch, MAN’s Director-General, Segun Ajayi-Kadri, argued that the band structure unfairly categorises residents without considering their income levels, household needs, or capacity.

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“You should not in any way seek to introduce a concept like Band A, which is discriminatory and not based on any scientific consideration. It is very subjective to simply designate an area as Band A without considering certain factors,” Ajayi-Kadri said.

He proposed a consumption-based tariff system, explaining that individuals with lower electricity usage are likely to have limited incomes and should pay less, while those with higher consumption should pay more.

Ajayi-Kadri also highlighted the impact of high electricity tariffs on industries, calling for relief measures for businesses to support Nigeria’s economic development goals for 2025.

He urged the government to adjust the tariff structure and prioritise power supply to sectors critical for economic growth, ensuring that the system benefits both consumers and industries.

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