Two households on the same distribution network can pay very different prices for the same unit of electricity. The reason is Nigeria's service-based tariff system, which groups customers into bands according to how many hours of supply their feeder is expected to deliver.
If you have ever wondered why your prepaid units seem to disappear faster than they used to, or whether moving bands would help, this guide explains how the system works and what it means for household and business budgets.
What Are Electricity Tariff Bands?
The Nigerian Electricity Regulatory Commission (NERC) sets tariffs for the distribution companies (DisCos). Customers are placed in one of five bands, A to E, based on the minimum average daily hours of supply on the feeder that serves them.
- Band A: 20 hours or more of supply per day.
- Band B: 16–20 hours.
- Band C: 12–16 hours.
- Band D: 8–12 hours.
- Band E: 4–8 hours.
The band is attached to the feeder, not to your house. Everyone on the same feeder is in the same band, which is why a whole street usually shares one classification.
What Band A Customers Pay
Band A customers pay the highest rate per kilowatt-hour because they are promised the most supply. Under the tariff order cited by BillsGuide.ng, the Band A rate for non-maximum-demand residential customers is ₦209.50/kWh across most DisCos, with Enugu Electricity Distribution Company at ₦160/kWh.
To put that in perspective, a household using 10 kWh a day on Band A spends roughly ₦2,095 a day on electricity, or around ₦63,000 a month. Running an air conditioner for several hours can easily double daily consumption.
Why Band A costs more
According to a NERC commissioner quoted by BusinessDay in October 2026, Band A is currently the only band paying a cost-reflective tariff. Bands B to E still receive a government subsidy, meaning their price per unit is below the actual cost of supplying the power.
What the 2027 Subsidy Phase-Out Could Mean
The same report notes that the Federal Government intends to phase out electricity subsidies from 2027. The government has said there is no immediate tariff increase, and the details of any transition have not been published. Still, for households and businesses in Bands B to E, it is sensible to plan on the assumption that the price per unit may move closer to cost-reflective levels over time.
That is a planning consideration, not a prediction of a specific figure. Watch for official announcements from NERC and your DisCo.
How to Check Your Band
You can confirm your band in several ways:
- Your prepaid token receipt or bill: the tariff class is usually printed on it.
- Your DisCo's website or customer care: most publish feeder classifications and accept enquiries by meter number.
- The DisCo mobile app or USSD service, where available.
If your feeder is classified Band A but you consistently receive far fewer hours than promised, you have the right to complain to your DisCo and, if unresolved, to NERC's customer complaint channels. Keep a simple log of outage times as evidence.
What Happens When Your Band Changes
Feeders are reclassified from time to time, usually after a review of the hours they actually deliver. A move up to Band A means a higher price per unit in exchange for more promised supply. A move down means cheaper units but fewer expected hours.
Neither change is automatically good or bad. For a business that depends on steady power, more grid hours can reduce generator use enough to offset the higher tariff. For a household that is out most of the day, paying Band A rates for hours it does not use may simply raise the bill. The useful question is not "which band am I in?" but "what does each hour of reliable power actually cost me, from every source combined?"
Questions worth asking your DisCo
- When was my feeder last reviewed, and what average hours did it record?
- How are reported outages logged against the band's promised hours?
- How do I request a refund or compensation where supply falls short?
Units Are Only Part of the Cost
The tariff tells you the price per unit. Your total energy cost also depends on:
- What fills the gaps: generator fuel and servicing during outages.
- Appliance efficiency: old fridges, incandescent bulbs and inefficient air conditioners waste units.
- Damage from poor supply: voltage fluctuations can shorten the life of electronics.
For many households, the hours without grid supply cost more than the units themselves.
Practical Ways to Reduce Your Exposure
Cut wasted consumption first
The cheapest kilowatt-hour is the one you never use. Switching to LED lighting, replacing old appliances with inverter-type models and turning off standby loads can make a noticeable difference to your monthly spend.
Shift heavy loads where possible
Pumping water, ironing and laundry can often be scheduled for periods when grid supply is available, or when your solar panels are producing most.
Add solar and storage
A solar system with battery storage lets you use free daytime energy, cover outages without fuel, and reduce how many units you buy from the grid. A hybrid inverter can draw from grid, solar and battery in a priority order you choose, which is especially useful on Band A where every unit is expensive. Our guide to solar installation costs in Nigeria explains what a system costs and how to compare quotes.
Plan Your Energy Budget With Confidence
Tariffs and subsidy policy will keep evolving, but the steps that protect you are the same: understand your band, reduce waste and add independent power where it makes financial sense. If you would like help working out how much grid electricity a solar system could replace for your home or business, contact 7th Breed or request a free quote.
Sources
- BillsGuide.ng, Electricity tariff per kWh in Nigeria — compare DisCos (Band A–E).
- BusinessDay, Only Band A customers pay cost-reflective tariff, says NERC commissioner (October 2026).