…As power crisis deepens despite 300% increase
Millions of Nigerians may soon face fresh economic hardship, as the Federal Government considers another electricity tariff increase amid worsening challenges in the country’s power sector, despite the over 300% hike introduced under the controversial Band-A classification system two years ago.
Discussions over a possible tariff adjustment intensified on May 12, 2026, following renewed pressure from power generation companies (GenCos) and other industry stakeholders who argued that current electricity pricing can no longer sustain rising operational and gas supply costs.
Operators are reportedly demanding urgent intervention from the Nigerian Electricity Regulatory Commission (NERC), warning that mounting debts, subsidy obligations, and inadequate cost recovery are threatening the survival of the sector.
The planned increase comes at a time when many Nigerians continue to endure unstable electricity supply, prolonged blackouts, and growing complaints over estimated billing, despite paying significantly higher tariffs since the Band-A regime was introduced.
The earlier tariff increase was expected to strengthen the financial position of electricity distribution companies (DisCos) and improve power supply nationwide. However, industry experts and consumers say there has been little noticeable improvement in electricity delivery across the country.
Concerns deepened further on May 11, 2026, after the DisCos reportedly rationed about 3,618 megawatts nationwide amid stagnant generation capacity and persistent gas shortages affecting thermal power plants, which account for most of Nigeria’s electricity generation.
Data from the Nigerian Independent System Operator (NISO) linked the poor electricity generation partly to inadequate gas supply to power plants, worsening supply instability across several states. Some consumers were also reportedly advised to downgrade to lower tariff bands to avoid paying higher charges for inadequate electricity service.
Experts warn that raising electricity tariffs without corresponding improvement in power supply could further worsen economic hardship and increase pressure on businesses and consumers nationwide.
