Development economist Ayo Ayalowo has called on Chief Bola Ahmed Tinubu’s administration and the Nigerian Electricity Regulatory Commission (NERC) to abandon the Band A, Band B, and Band C classification system, citing inadequate power supply for Nigerians despite tariff increases.
Speaking in an interview on Channels Television, Ayalowo emphasized that rising energy prices, including electricity and diesel, significantly contribute to Nigeria’s escalating inflation rates.
Ayalowo urged the government to reconsider the recently announced 240% electricity tariff hike for Band A customers receiving 20 hours of power supply, emphasizing that Nigerians are still experiencing power shortages despite the tariff adjustment.
Ayalowo stated, “The energy prices, especially this Band A, Band B, and C nonsense, need to be jettisoned. And a sensible approach must be taken so that Nigerians can enjoy electricity at a reasonable cost. NERC needs to go back and rejig the tariff and stop the nonsense band classification because Nigerians are still not getting power supply.”
He suggested that the government should increase tariffs marginally for electricity customers nationwide.
“I will suggest that the Minister of Power and Nigerian Electricity Regulatory Commission would have increased tariff marginally across the board, not cheating Paul to pay Peter as they are doing,” he added.
Recall that NERC’s announcement on April 3, 2024, of a tariff hike to N225 per kilowatt-hour from N66 for Band A customers was met with condemnation from various quarters, including the Nigeria Labour Congress, Trade Union Congress, and other organizations.
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Nigerians have continued to express dissatisfaction with the power supply, which has reportedly decreased since the tariff adjustment.
