Nigeria's Electricity Tariff Bands A–E Explained: What You Should Be Paying
Band A customers pay roughly four times Band C for the same electricity. Here is how the bands work, what each should cost, why your DisCo's rate differs from the national figure, and how to challenge a wrong classification.
Updated 2026-09-10
Since April 2024, two Nigerian households using exactly the same amount of electricity can receive bills that differ by a factor of four. That is not an error and it is not corruption. It is the service-based tariff, and understanding it is worth real money.
How the bands work
NERC introduced the service-based tariff framework on 1 November 2020. Every feeder is classified into one of five bands based on how many hours of supply customers on that feeder actually receive each day.
| Band | Hours of supply per day | Reference rate per kWh |
|---|---|---|
| A | 20–24 | ₦209.50 |
| B | 16–20 | ₦62.48 |
| C | 12–16 | ₦50.00 |
| D | 8–12 | ₦43.00 |
| E | 4–8 | ₦40.00 |
The logic is that you pay more for more reliable supply. Band A gets near-continuous power; Band E gets four to eight hours.
The critical detail is that your band is attached to your feeder, not to your house or your neighbourhood's reputation. Two streets in the same area can sit on different feeders and pay different rates.
Why Band A costs so much more
In April 2024 NERC moved Band A customers onto a cost-reflective tariff, removing most of the government subsidy for that band. The rate jumped from ₦66 to roughly ₦209.50 per kWh — an increase of more than 250% — affecting the roughly 15% of Nigerian electricity customers who receive 20 or more hours of supply a day.
Bands B to E remain subsidised. That is why the gap between Band A and Band C is so extreme, and it is why being reclassified from Band A to Band C is worth more than any energy-saving measure you could undertake.
The national rate is not your rate
This is the part that trips people up.
Band A is a national rate, though NERC can approve DisCo-specific variations. Reported Band A rates range from ₦160 to ₦225 per kWh depending on the distribution company and the period. EEDC has billed as low as ₦160.
Bands B to E are reference rates only. NERC approves them per DisCo, they have been frozen at December 2022 levels, and they have never converged. Band C alone:
| DisCo | Band C rate per kWh |
|---|---|
| Ikeja Electric | ₦45.80 |
| KEDCO (Kano) | ₦47.57 |
| EEDC (Enugu) | ₦53.78 |
| PHED (Port Harcourt) | ₦56.38 |
The table of reference rates tells you roughly where you should be. Your vending receipt tells you exactly where you are. Always use the receipt.
Checking your own bill
One unit is one kilowatt-hour. Take the units on your last receipt and multiply by the rate printed on it, then add 7.5% VAT.
A Band A household using 300 units:
- Energy charge: 300 × ₦209.50 = ₦62,850
- VAT at 7.5%: ₦4,713.75
- Total: ₦67,563.75
The same 300 units on Band C at ₦50:
- Energy charge: ₦15,000
- VAT: ₦1,125
- Total: ₦16,125
A difference of ₦51,438 a month, or ₦617,262 a year, for identical consumption. There is no appliance upgrade that competes with that.
Finding your band
- Look at the rate on your last prepaid vending receipt or monthly bill. Around ₦209.50 means Band A. ₦40–₦70 means Bands B to E.
- Confirm through your DisCo's app or customer line, quoting your meter or account number.
- Ask which feeder you are on and what band that feeder carries.
Challenging a wrong classification
If you are billed as Band A but consistently receive far fewer than 20 hours of supply, you are being overcharged and you can ask to be reclassified.
Practically:
- Document it. Log your supply hours over two to four weeks. A simple daily note of when power came and went is enough to start.
- Write to your DisCo, not just call. Reference your meter number, your feeder, and the hours logged.
- Escalate to NERC if the DisCo does not respond. NERC's customer complaint portal handles band classification disputes.
Reclassifications do happen. There have been publicised cases of feeders moved from Band A to Band C or E after sustained customer complaints backed by supply logs.
What the bands mean for your other choices
If you are on Band A, your grid electricity costs roughly ₦225 per kWh including VAT. A petrol generator producing about 2.5 kWh per litre at ₦1,300 costs around ₦520 per kWh. Grid is still far cheaper, which means the rational response to a Band A classification is to reduce consumption and challenge the band — not to switch to a generator.
If you are on Band D or E, you are paying a low rate for power you rarely get, and your real electricity cost is whatever the generator or inverter spends filling the gap. That is the situation where solar genuinely pays back, and where sizing matters most.
Work out your own numbers before deciding anything. The difference between bands is large enough that guessing is expensive.