Band A Consumers Contribute N101bn to Electricity Subsidy

A report by ZKJ Energy Partner Limited revealed that in 2025, consumers in Nigeria's highest electricity service category, Band A, contributed an estimated N101bn to subsidize customers in lower tariff bands, rather than receiving any portion of the Federal Government's electricity subsidy. The report indicated that Bands B and C received approximately 70 percent of the N1.93tn subsidy, with Band B receiving N741bn (38 percent) and Band C receiving N609bn (32 percent).

Band A customers, who are guaranteed a minimum of 20 hours of electricity supply daily, paid tariffs slightly above the estimated cost of supply and thus did not benefit from the subsidy. Instead, their contribution helped offset the costs for Bands B, C, D, and E.

The gross subsidy requirement was estimated at N2.03tn before accounting for Band A's contribution, which effectively reduced the net subsidy requirement to N1.93tn.