By Oke Peter
The Lagos State Government’s decision to phase out electricity tariff bands has sparked widespread debate across Nigeria’s commercial capital, with many residents welcoming the move as a step towards fairness while others fear it could worsen power outages if not properly implemented.
The proposal, being driven through the Lagos State Electricity Regulatory Commission (LASERC), came into focus in May 2026 when the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, disclosed that the state was considering scrapping the current electricity band classification system used by distribution companies.
•Governor Babajide Sanwo-Olu of Lagos State
Under the existing structure introduced by the Nigerian Electricity Regulatory Commission (NERC), electricity consumers are grouped into Bands A to E based on the estimated hours of electricity supplied daily. Customers under Band A, who are expected to receive at least 20 hours of power supply, currently pay the highest tariffs, while consumers on lower bands pay reduced rates.
Lagos State officials say the planned reform is aimed at creating a fairer electricity system where residents are not divided into categories that determine who enjoys better power supply. The government believes every resident deserves access to improved electricity regardless of location or feeder classification.
The move is also part of Lagos’ broader ambition to strengthen its electricity market following the Electricity Act 2023, which granted states greater authority to regulate and develop power systems within their territories. State authorities say the long-term goal is to build a more reliable electricity network capable of supporting economic growth, businesses, and household needs across Lagos.
While many residents acknowledge the government’s intention to protect consumers and promote equality, concerns remain over whether the state currently has enough electricity infrastructure to sustain a uniform supply system.
Some consumers fear that abolishing tariff bands without significantly improving generation and distribution capacity may reduce the quality of supply currently enjoyed in some areas and ultimately spread electricity shortages more evenly across the state.
“I appreciate the government’s concern for residents, but Lagos must be careful,” said Chinedu Okafor, a businessman residing in Lekki. “Band A customers pay more because they receive better supply. If the system is removed without enough available power, many areas could experience more darkness.”
Another resident, Amina Yusuf, a fashion entrepreneur in Surulere, said the current arrangement, despite its flaws, gives consumers some level of confidence that higher tariffs translate into improved service.
“The government’s intention may be good, but stable electricity is what people truly want,” she said. “Lagos should first guarantee enough power generation before removing the tariff bands. Residents cannot afford a situation where everyone is treated equally on paper but suffers poor electricity supply in reality.”
Electricity distribution companies have also expressed reservations, warning that removing the classification system too quickly could create operational challenges and affect service delivery.
Meanwhile, NERC has maintained that while states now have powers to regulate electricity markets within their jurisdictions, such decisions must still reflect the actual cost of power supply from the national grid or be supported with subsidies where necessary.
The Commission has repeatedly stressed that any tariff adjustments by state regulators must be carefully designed to avoid destabilising the power sector or discouraging investment.
For many Lagos residents, the conversation is no longer just about tariff categories but about the larger promise of reliable electricity. Years of unstable supply have forced millions of households and businesses to depend heavily on generators despite repeated reforms in the sector.
As consultations continue, residents are expected to pay close attention to how the Lagos State Government intends to implement the policy and whether the proposed reform can truly deliver on its promise of a fairer and more reliable electricity future for all.
