Lagos Plans End to Electricity Band Classification

Lagos State is embarking on an ambitious plan to dismantle the electricity customer banding system, a move that signals a significant shift in the state's approach to power supply. The current system, implemented by the Nigerian Electricity Regulatory Commission (NERC), categorizes consumers into bands (A-E), with Band A customers receiving premium service at a higher cost and others receiving subsidized power with less supply.

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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.

Biodun Ogunleye, the Commissioner for Energy and Mineral Resources, has articulated a vision for a Lagos where stable, 24-hour electricity is not a luxury but a standard. This aspiration directly challenges the limitations imposed by the banding system, which inherently creates a tiered experience for consumers. The Commissioner's assertion that achieving continuous power supply is possible, and indeed a challenge thrown down by Governor Babajide Sanwo-Olu, reflects a determination to overcome the current infrastructural and regulatory hurdles.

Beyond phasing out banding, Lagos is actively pursuing a broader transformation of its electricity landscape. The state is intensifying efforts to strengthen its electricity infrastructure and accelerate clean energy initiatives. This includes a notable expansion of solar streetlight deployment, with thousands of conventional lights being replaced by smart, solar-powered systems across major highways and roads.

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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?

These initiatives are part of a larger strategy to establish a competitive electricity market driven by private sector participation, as mandated by the Lagos State Electricity Law 2024. By updating its Integrated Resource Plan and finalizing a Strategic Implementation Plan, Lagos aims to move away from a single-buyer model towards bilateral energy trading. The establishment of the Lagos Independent System Operator is also crucial for enhancing grid stability and market performance, all contributing to the ultimate goal of a reliable 24-hour economy for the state.

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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.