Are Northerners Really Paying More for Electricity?

A video claiming that people in Bauchi State pay more for electricity has become popular on social media. The video showed a resident comparing what prepaid customers under the Jos Electricity Distribution Company (JEDC) and the Ibadan Electricity Distribution Company (IBEDC) pay for the same amount of electricity. The analysis, which was done in Hausa, was titled “Banbancin kuɗin wutar Lantarki na Arewacin Nigeria da kudanci,” which means “Difference of price of electricity in northern and southern Nigeria.”

The analysis claimed that JEDC customers pay N1,000 for 4.5 units of electricity under Band A. In contrast, IBEDC customers supposedly pay N90 for 8.45 units without mentioning the band. The narrator explained that the N1,000 paid by JEDC customers means 1 unit costs N250, while IBEDC customers purchase 1 unit for N10.95. The narrator added that with N1,000, IBEDC customers using prepaid meters would get 94.4 units.

The narrator aimed to show how people in the north might be cheated in the electricity sector. He pointed out that the cheaper electricity in the south has made residents quiet, despite the high prices since the increase in tariff for Band A customers. He also asked if different policies exist for the two regions and demanded an explanation from officials about the price difference.

In his analysis, the narrator clearly mentioned the band for electricity purchased in JEDC but did not specify the band for IBEDC customers. From his analysis, it seems that the 4.5 units were bought by a Band A customer in Bauchi State. He suggested that all electricity users in the north face the same situation, even though the region has four electricity companies serving it.

While the analysis was right about the N1,000 for 4.5 units in JEDC and other customers in the north, the same situation applies to electricity customers in the south. The Nigerian Electricity Regulatory Commission (NERC) is the body that regulates the power sector, and its rules usually apply equally to all electricity distribution companies (DisCos), except when specific to a particular company.

In setting new electricity tariffs for 2024, NERC introduced a service-based tariff that splits consumers into bands A, B, C, D, and E. They made a single order that all DisCos across the country must follow. This means that no DisCos can charge more than what was approved. In April 2024, the federal government announced a 300 percent increase for electricity consumers under Band A feeders, raising it from N65 per kilowatt hour to N225 per kilowatt hour.

NERC explained that the increase was due to the federal government’s failure to provide electricity subsidies for Nigerians, leading to debts to power generation plants. For that year, the government expected electricity subsidies to rise to N2 trillion because of the sharp rise in foreign exchange between the dollar and Naira, which affects electricity tariffs. To stabilize the sector and help investors recover their funds, the government decided to let Band A customers pay the real price of their tariff. This move would also help the government reduce its obligations and allow utilities to expand their networks and pay their debts.

Earlier this year, the government's debt caused gas suppliers to cut the amount of gas supplied to power plants. This led to a drop in electricity supply across the country. Band A customers were affected because DisCos did not receive enough electricity from the national grid to serve them. It is also important to note that since the other bands still receive subsidies, they pay lower amounts for electricity. For example, Band B customers pay N64.07 per kilowatt hour (Kwh), while Band C pays N52.05/Kwh, Band D pays N43.27/Kwh, and Band E pays N32.44/Kwh. These prices are the same for all DisCos in the country. Therefore, the band a customer belongs to determines how much they pay.

This claim is false. There have been protests by residents in the south who have taken to the streets over the increase in electricity tariffs for Band A users. Customers served by Ibadan, Ikeja, Eko, Enugu, Port Harcourt, and Benin distribution companies have protested against the migration to Band A. They have also protested the high prices they must pay, even though NERC approved this if it found a DisCo could provide at least 20 hours of electricity.

The claim that northerners pay more for electricity is not true. Information shows that all electricity consumers pay the same price for units regardless of their location in the country. While the narrator in the video clearly stated that the electricity unit purchased for N1,000 was for a Band A customer of JEDC in Bauchi State, he did not give the same details for the 8.5 units purchased from IBEDC. This suggests that the video was likely meant to mislead northerners into thinking the current electricity tariffs favor southerners.