Residents took to the streets of Lagos this week. They carried banners. One read: “Band A is a scam, we say no to Band A.” Another read: “We say no to crazy electricity tariffs.” They marched along a commercial street. They chanted in Yoruba. They accused the distribution company of daylight extortion. Their complaint is simple. They pay premium rates. They do not get premium power.
The service-based tariff regime began under the Multi-Year Tariff Order. Band A customers pay between ₦206 and ₦225 per kilowatt-hour. That is roughly three times the old rate of about ₦68. In exchange, they should receive at least 20 hours of supply daily. The Nigerian Electricity Regulatory Commission set the condition. The distribution companies collect the money. The supply has not followed. NERC has ordered compensation for shortfalls. Residents say the credits never arrive.
The protest follows months of similar actions. In September, residents of Akowonjo and Egbeda demanded a return to Band B. One resident said ₦5,000 bought 22 units on Band A. The same sum bought 74 units on Band B. In August, Otumara residents accused Eko Electricity Distribution Company of charging ₦209.50 per kilowatt-hour while their district remained on Band B. The Ilasamaja community also challenged its reclassification. The Nigerian Labour Congress has called the band system “institutionalised extortion”. Lagos State says it wants to abolish the bands. The distribution companies warn that scrapping them could cause blackouts. The protesters say they cannot afford the bills. A minimum-wage worker earns ₦70,000 a month. A single week of Band A electricity can consume most of it. Businesses are cutting hours. Households are switching off security lights. Theft is rising in darkened streets.
Winners: Distribution companies, which collect premium tariffs. NERC, which can claim to regulate. Solar and generator sellers, who gain customers. Losers: Households, who pay more for less. Small businesses, which face crippling bills. Band A customers, who are billed for power they do not receive. The grid, which loses public trust. The government, whose reform is rejected on the streets.
Bottom Line: Band A was meant to trade higher tariffs for reliable power. It has delivered higher tariffs and unreliable power. The protesters are right. A tariff without service is a scam. NERC must enforce the 20-hour rule or scrap the band. Until then, the streets will keep marching.