Band A Electricity Tariff: All You Need to Know 2025

Electricity remains one of the most critical infrastructures for development in any country. In Nigeria, however, the story of power supply is complex. While some areas enjoy near-constant electricity, others struggle with hours of blackout every day. The Nigerian Electricity Regulatory Commission (NERC) has categorized electricity distribution into different bands — A to E — based on the average number of daily supply hours. As of 2025, Band A electricity tariff has become a hot topic, mainly due to its recent price hike and its implications for consumers.

In this article, we’ll explain what Band A electricity tariff is, how much it costs, how long the units last, and what it means for your monthly budget, especially if you’re on this premium band.

What Is Band A Electricity Tariff?

Band A is the highest electricity service category under Nigeria’s electricity distribution framework. It is designed for areas that receive 20 hours or more of electricity supply per day. This band typically includes affluent neighborhoods, industrial areas, and business hubs where a reliable power supply is critical.

The idea behind this classification is simple: those who receive more electricity pay a higher rate per kilowatt-hour (kWh) than those who get less. While this system aims to ensure fairness, recent changes in the Band A tariff structure have sparked discussions across the country.

Band A Electricity Tariff Price in 2025

As of April 2025, the tariff for Band A customers has increased significantly. According to the latest NERC-approved pricing, Band A now charges approximately ₦225 per kilowatt-hour (kWh). This is a sharp contrast to the previous rate of around ₦66 per kWh for other bands like B, C, D, and E.

Understanding the Price Breakdown

To put this into perspective:

• ₦1,000 now gives you approximately 4.5 units of electricity on Band A.
  
• At ₦225 per unit, this means:
  
  • 1 unit = ₦225
    
  • 4.5 units = ₦1,012.50 (rounded off to ₦1,000 for ease in purchase via prepaid meters).
    

This rate is nearly triple the rate that consumers in lower bands pay, despite those groups receiving significantly fewer hours of electricity per day.

How Long Does Band A Unit Last?

The longevity of your Band A electricity units depends on two things:

1. The amount of electricity you consume daily (measured in kilowatt-hours)
   
2. The number of electrical appliances in use
   

Average Daily Usage Estimate

Let’s break this down with a basic estimate:

• A typical Nigerian household that uses:
  
  • 1 refrigerator (1.2 kWh/day)
    
  • 4 ceiling fans (0.3 kWh each/day)
    
  • 5 light bulbs (0.1 kWh each/day)
    
  • 1 television (0.2 kWh/day)
    
  • 1 pressing iron (1 kWh/day for 1 hour use)
    
  • Total usage = Approximately 6 – 10 kWh per day
    

If you’re consuming around 22.5 kWh per day, and each unit costs ₦225, your daily electricity cost will be:

• 22.5 units × ₦225 = ₦5,062.50 per day
  

Monthly Cost for Band A Users

Now, let’s do the full math to see how much an average household on Band A might spend monthly:

• Daily usage estimate: 22.5 units
  
• Monthly usage (30 days): 22.5 × 30 = 675 units
  
• Monthly cost: 675 units × ₦225 = ₦151,875
  

That’s ₦150,000+ monthly just for electricity!

For small businesses, factories, and households with higher consumption (such as those using air conditioners, pumping machines, or freezers), this amount can easily go above ₦200,000 or even ₦300,000 monthly.

Why the Band A Tariff Is Higher

There are several reasons why the Band A electricity tariff is more expensive:

1. Stable Power Supply

Customers on Band A enjoy a minimum of 20 hours of electricity daily, which is significantly more than others. The higher cost reflects the premium nature of this service.

2. Cost of Generation and Distribution

Due to rising fuel costs, inflation, and foreign exchange issues, the cost of generating and distributing electricity has gone up. Band A consumers indirectly subsidize the cost of supplying electricity to lower bands.

3. Target Audience

The Band A category was designed with a specific demographic in mind — businesses, industrial users, and high-income earners who can afford to pay more in exchange for uninterrupted power. This classification helps power providers focus their supply where it’s most economically beneficial.

Challenges Facing Band A Consumers

While Band A customers receive more stable electricity, the cost can be burdensome. Here are some common complaints and issues:

– High Monthly Bills

Paying ₦150,000 or more every month just for electricity is unsustainable for many households.

– Unequal Distribution

There are cases where areas classified as Band A do not receive up to 20 hours of power daily, but still get charged Band A rates. This discrepancy has led to widespread complaints.

– Lack of Communication

Many consumers report that they were moved to Band A without proper notice, leaving them shocked when their electricity units finished quicker than expected.

Tips to Manage Electricity Costs on Band A

If you’re currently in Band A and finding it hard to keep up with the cost, here are some practical strategies:

1. Audit Your Energy Use

Identify high-consumption appliances and reduce unnecessary usage. Switch off electronics when not in use.

2. Switch to Energy-Efficient Appliances

Use energy-saving bulbs, inverter air conditioners, and modern refrigerators that consume less power.

3. Consider Solar Power

For those who own their homes, investing in solar panels and inverters can help supplement your electricity usage and reduce reliance on the grid.

4. Lodge a Complaint If Necessary

If you are paying Band A rates but not getting up to 20 hours of power daily, you have the right to report this to NERC or your distribution company (DisCo). There are mechanisms in place to reclassify customers into the correct band based on actual supply.

Final Thoughts

The Band A electricity tariff in 2025 is a double-edged sword — while it guarantees consistent power supply, it comes at a significant cost. For those who can afford it, the benefits are undeniable: stable light for business operations, home comfort, and reduced dependence on generators. But for the average Nigerian, this new rate has sparked real concern.

Before accepting a Band A classification, it’s essential to evaluate whether the benefits justify the costs. Always stay informed, monitor your meter usage, and communicate with your DisCo if the promised 20 hours of electricity per day isn’t being delivered.