Lagos electricity band system may be phased out as the state targets stable 24-hour power supply for residents

The Lagos State Government has announced plans to phase out the electricity band classification system introduced by the Nigerian Electricity Regulatory Commission in 2024 as part of efforts to achieve stable power supply across the state.

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Speaking on Monday at a ministerial press briefing in Alausa, Ikeja, the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the government was working towards uninterrupted electricity supply that would make the current banding structure unnecessary.

In April 2024, the Nigerian Electricity Regulatory Commission introduced electricity customer bands ranging from A to E. Under the arrangement, Band A customers pay the full cost of electricity in exchange for a minimum of 20 hours of daily supply, while customers in lower bands receive subsidised tariffs with fewer hours of electricity.

Ogunleye said the Lagos State Government, through the Lagos State Electricity Regulatory Commission, was focused on creating an electricity market capable of delivering reliable power to all residents regardless of classification.

“Let me say this: Part of what we are trying to enable is an environment that eliminates banding. Banding says that you have 3, 8, 12, or 21 hours of electricity,” he said.

“What we are saying is, is it impossible to have a continuous power supply? The governor has thrown the challenge and even repeated it again this morning. Is it impossible to have a 24-hour power supply?”

The commissioner expressed confidence that the target could be achieved, recalling periods when parts of Lagos previously enjoyed stable electricity supply.

“I strongly believe that we can do it. We have seen it before in this city. Banding is not what we want to focus our attention on,” Ogunleye added.

The Lagos electricity band system discussion comes as Governor Babajide Sanwo-Olu’s administration intensifies reforms in the energy sector following the implementation of the Lagos State Electricity Law 2024.

Ogunleye also disclosed that the state government would not operate an electricity subsidy regime, stressing that consumers would pay the real cost of power as directed by the governor.

According to him, Lagos has expanded solar streetlight deployment, strengthened electricity infrastructure and accelerated clean energy projects to support its ambition of building a reliable 24-hour economy.

The commissioner revealed that the state had updated its Integrated Resource Plan and completed a Strategic Implementation Plan aimed at eliminating the single-buyer electricity model while encouraging bilateral energy trading.

He added that the Lagos State Electricity Regulatory Commission had strengthened licensing and enforcement activities, while the Lagos Independent System Operator was being positioned to improve grid stability and market performance.

On renewable energy expansion, Ogunleye said the government had replaced 22,000 conventional streetlights with smart solar-powered systems installed along major roads including Gbagada-Oshodi Expressway, Lekki-Epe Expressway, Ikorodu Road and Funsho Williams Avenue.

He said an additional 20,000 solar streetlights had also been installed, bringing the total number of operational smart solar-powered streetlights across the state to about 42,000.

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Ogunleye further disclosed that critical public institutions had benefited from recent power interventions, noting that Gbagada General Hospital now enjoys between 21 and 22 hours of electricity daily following the installation of new 2MVA and 1MVA transformers.