What to Know About the New Electricity Tariffs
If you use electricity in Nigeria, it’s important to know what to know about the new electricity tariffs and how they affect your household or business. In 2025, the Nigerian Electricity Regulatory Commission (NERC) approved a revised service-based electricity tariff structure. These new rates have stirred a national debate, as many Nigerians are experiencing increased bills without noticeable improvements in power supply.
This article breaks down everything you need to know about the new electricity tariffs—who is affected, how rates have changed, and what you can do to manage costs.
Why Were the New Electricity Tariffs Introduced?
The goal behind the new electricity tariffs is to reduce the financial burden of electricity subsidies on the federal government. For years, electricity prices in Nigeria were heavily subsidized. Yet, the sector continued to suffer from inefficiencies, poor infrastructure, and unreliable service.
With the latest tariff review, electricity costs are now tied to service delivery. This means consumers are charged based on how many hours of electricity they receive each day. It’s a system called “service-based tariffing.”
Who Is Affected by the New Electricity Tariffs?
The new electricity tariffs divide customers into five bands, based on average daily electricity supply:
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Band A – 20 hours and above
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Band B – 16 to 20 hours
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Band C – 12 to 16 hours
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Band D – 8 to 12 hours
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Band E – Below 8 hours
Those in Band A are the most affected. As of July 2025, many in this group now pay between ₦150 and ₦225 per kWh, depending on their location and Distribution Company (DisCo).
In contrast, Bands D and E—those with the least supply—continue to pay subsidized rates. However, these groups also face frequent blackouts, forcing them to rely on generators or solar energy.
What to Know About the New Electricity Tariffs: Key Details
1. Prices Vary by Region and Provider
Each DisCo sets slightly different rates. Always check your local DisCo’s official website or NERC’s tariff page for updated prices.
2. Prepaid Metering is Encouraged
Customers are advised to switch to prepaid meters, which promote transparency and help consumers track their usage in real time.
3. Service May Not Match Price
Although tariffs are based on supply hours, many Band A customers still complain about inconsistent electricity. If you’re not getting what you pay for, you can report your DisCo to NERC via official channels.
Tips to Reduce Your Electricity Costs
With higher electricity bills now common, here are ways to stay in control:
💡 Switch to Energy-Saving Appliances
Use LED bulbs, energy-efficient fans, and smart power strips to reduce your consumption.
💡 Unplug Devices When Not in Use
Appliances like TVs, decoders, and chargers continue to draw power when plugged in—even if they’re off.
💡 Consider Solar Alternatives
Although the cost is high upfront, solar panels and inverters can offer relief from both high bills and poor supply in the long term.
You can also visit the official NERC website at
https://nerc.gov.ng
for detailed guidelines and approved tariff bands.
Final Thoughts
Understanding what to know about the new electricity tariffs in Nigeria is no longer optional. With the new system now active, it’s crucial to stay informed and take practical steps to manage your consumption.
If you believe you’ve been overcharged or misclassified into the wrong band, contact your DisCo immediately or file a complaint through NERC.
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