Power Sector in Turmoil: Band Classification Fails as Supply Plummets
Consumers in Lagos, Abuja, Port Harcourt and Calabar now receive far less electricity than promised under NERC’s band system, paying more for unreliable service. Band A feeders should deliver 20 hours daily, but output is often well below target. Experts say the band regime is a superficial fix for deeper problems: ageing infrastructure, high technical and commercial losses, unmetered customers and gas supply bottlenecks. Some feeders have been quietly downgraded, and lawmakers are considering reforms that could see investors lose their stakes or trigger re-privatisation. NERC enforcement actions include automatic downgrades, free energy unit compensations, mandatory public explanations and heavy fines on underperforming Discos. In 2024/25 alone, regulators fined eight distribution companies over ₦628 million for non-compliance. Stakeholders warn that unreliable power drives up diesel and petrol use, inflates production costs and deters investment. They call for urgent reforms to improve gas pricing, market liquidity and operational efficiency across the power value chain.
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