Band A power users subsidised others with N101bn – Report
A new report reveals Band A electricity users effectively subsidised lower tariff bands with N101bn in 2025, challenging assumptions about electricity subs Read More: https://punchng.com/band-a-power-users-subsidised-others-with-n101bn-report/
A new report has revealed that Nigeria's electricity subsidy disproportionately benefits middle-income consumers in Bands B and C, with Band A effectively contributing N101bn towards subsidizing lower tariff bands in 2025. Band B customers were the largest beneficiaries, receiving approximately N741bn, representing 38% of the total subsidy, followed by Band C at N609bn (32%).
Despite having a minimum supply target of 20 hours daily, Band A consumers paid tariffs slightly above the estimated cost of supplying them with power and did not receive any subsidy. Consequently, they contributed N101bn, which reduced the gross subsidy requirement from N2.03tn to the net N1.93tn in 2025.
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