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Scrap ‘Exploitative’ Band A Electricity Tariff, Pat Utomi Urges Federal Government

Scrap ‘Exploitative’ Band A Electricity Tariff, Pat Utomi Urges Federal Government

Renowned political economist and Convener of The Big Tent, Professor Pat Utomi, has strongly urged the Federal Government to re-evaluate and potentially abolish the Band A electricity tariff, describing it as “exploitative” and “lacking in economic sense.”

Professor Utomi made the call on Monday, July 28, 2025, at a news conference organized by his group on the “state of the nation” held in Lagos. He argued that the current electricity pricing model, which assigns the highest tariffs to customers promised a minimum of 20 hours of daily power supply (Band A), is severely burdening Nigerians and exacerbating economic hardship.

Under Nigeria’s service-based tariff (SBT) structure, customers are categorized into Bands A through E based on the guaranteed minimum hours of electricity supply they receive, with Band A customers paying a premium for supposedly higher quality service.

“This Band A structure lacks economic sense and is reaping off hardworking Nigerians,” Professor Utomi asserted. He highlighted a grim scenario where, for instance, a university professor under Band A could spend up to 75 percent of their salary on electricity tariff alone, an unsustainable burden that “will further impoverish Nigerians, especially the working class” if not speedily revalidated.

Utomi emphasized that public utilities must be priced fairly and remain within the economic reach of the average citizen. He warned that the increasing cost of energy could deepen social inequality and erode public trust in government policies.

Beyond the power sector, Professor Utomi also used the platform to call on the National Assembly to prioritize the passage of meaningful legislation that directly impacts national development, such as electoral reforms and measures to address pervasive insecurity, especially rural policing. He stressed that while oversight functions are crucial, they should not overshadow the urgent need for foundational reforms to improve the lives of Nigerians.

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The call from Professor Utomi adds to the growing chorus of voices urging the government to review policies that impose significant financial strain on citizens amidst current economic realities.

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