Residents and business owners in Abuja are calling on the Federal Government to lower electricity tariffs, as the economic strain of high bills becomes unsustainable.
Many of these customers fall under Band A, a category that includes those who receive at least 20 hours of electricity daily but must pay a steep N209.5 per kilowatt hour (KWh) for this service.
In areas such as Lugbe, Area 10, and the Apo Resettlement, where many of these customers reside, the voices of frustration are growing louder.
They say that while they appreciate the steady electricity supply, the high cost is becoming unbearable in the current economic climate.
One resident, Mrs. Amen Odigie, a civil servant living in Lugbe, shared her struggle with balancing her electricity bills and her limited salary.
Odigie explained that her monthly electricity costs for her two-bedroom apartment exceed N30,000.
“This is really telling on me as what I earn as salary cannot go anywhere with the present economic hardship in the country,” she said.
She appealed to the government for a reduction in the Band A tariff, explaining that it consumes a large portion of her income.
Mrs. Odigie’s sentiments echo those of many in Abuja who are trying to make ends meet amid high inflation and a rising cost of living.
In the same Lugbe area, Mr. Ugochukwu Okafor, a vulcaniser, shared similar concerns, expressing frustration with how the high tariff impacts his ability to provide for his family.
For Okafor, who relies on modest earnings from his work, the current Band A tariff is unsustainable.
He called on the government to urgently address the issue.
“I want the Federal Government to do something about the Band A tariff as it is too high, in view of the present hardship in the country,” he said.
Another affected resident, Mrs. Anita Adaje, a fashion designer in Apo Resettlement, explained how the high electricity tariff is impacting her business.
For Adaje, reliable electricity is essential for running her sewing machines and completing customer orders.
However, with the current Band A rate, she finds it increasingly difficult to turn a profit.
“When you bill customers so high, they will refuse to pay, and this is really affecting my business,” she explained.
Adaje hopes that the government will review the tariff so that she and other small business owners can stay afloat.
Businesses in Abuja’s Area 10, particularly those that rely heavily on electricity, are also feeling the impact.
Mr. Festus Ogunbor, a printer in the area, said that he spends over N30,000 each month to keep his printing machines running.
For him, the high cost of electricity is not only affecting his ability to fulfill customer orders but is also eroding his profits.
“How much do I make that I have to be paying so much for electricity?” he questioned, voicing his frustration with the current tariff.
Ogunbor pleaded with the government to lower the cost of electricity, as he believes it is impacting not only businesses but also the overall cost of living.
His colleague, Mr. Chidi Okeke, who also operates a printing business in Area 10, voiced similar concerns.
He said that the high electricity tariff has made it difficult for him to power his machines and sustain his operations.
Okeke emphasized that reducing the tariff could help boost small businesses, which in turn would create more employment opportunities.
“Government should look for a way of reducing the high cost of electricity to boost businesses as well as encourage more Nigerians to go into business,” he said.
The calls for a tariff reduction come at a time when Nigerians are grappling with significant economic challenges, including inflation and rising costs for essential goods and services.
The current Band A tariff, implemented to support power infrastructure improvements, is meant to provide high-quality service in exchange for higher charges.
However, residents argue that the price is becoming unaffordable for the average Nigerian, especially with the economic challenges facing the country.
The introduction of the Multi-Year Tariff Order (MYTO) was intended to balance electricity costs with service quality, assigning higher tariffs to customers in higher bands who enjoy more hours of power supply daily.
But for many customers in Band A, like those in Abuja, the cost far outweighs the benefits.
Electricity advocacy groups have called on the Federal Government and regulatory agencies to consider a review of these tariffs to reflect the current economic reality.
One advocacy group spokesperson explained that electricity costs in Nigeria are rising faster than incomes, pushing some households and businesses to reconsider their energy needs.
“High tariffs should be paired with affordability measures,” he said, arguing that an unsustainable tariff could lead customers to limit electricity use or disconnect entirely.
The Transmission Company of Nigeria (TCN) and electricity distribution companies maintain that the Band A tariff is necessary to ensure the quality and reliability of service for customers.
They argue that lower tariffs would limit investment in infrastructure, which could reduce power supply hours.
However, some industry experts suggest that there are alternative ways to balance affordability with infrastructure funding.
Dr. Chuka Obi, an energy policy analyst, believes that targeted subsidies for low-income consumers could help mitigate the impact of high tariffs without disrupting service quality.
“We need a balanced approach that protects the poorest consumers while still supporting the sector,” Obi said.
He suggested that regulators review the MYTO to explore ways of offering relief to those most affected by the economic situation.
