Meter
The recent reduction in electricity tariffs by the Enugu State Electricity Regulatory Commission (EERC) has sparked widespread resistance to bill payments across Nigeria. The EERC slashed Band A tariffs from N209 per kilowatt-hour to N160/kWh, effective August 1, 2025. However, this move has created a ripple effect, with customers in other states demanding similar reductions and some outrightly refusing to pay their electricity bills.
Customers in other states are demanding similar tariff reductions, citing the Enugu State example. Some customers have taken a position that they will no longer pay their electricity bills until tariffs are reduced. This development has raised concerns about the sustainability of the power sector, particularly given the existing challenges with electricity subsidy payments.
Electricity distribution companies (Discos) are worried that this development could destabilize the country’s fragile power sector. Delays in electricity subsidy payments have already left power generation companies and gas suppliers with almost N5 trillion in unpaid invoices, creating a ripple effect that endangers the national power supply.
The Association of Nigerian Electricity Distributors (ANED) has raised concerns about the sustainability of the power sector if states unilaterally reduce tariffs without a clear subsidy framework. Discos argue that the tariff reduction in Enugu relies heavily on federal subsidies, which are already underfunded and delayed.
Discos are calling for policy alignment across federal and state levels, a fully funded and transparent subsidy framework, and timely subsidy disbursements to ensure continued power supply. They warn that unless urgent steps are taken, public resistance to payment could jeopardize efforts to build a stable and investor-friendly electricity market in Nigeria .
