Joe Ajaero, President of the Nigeria Labour Congress (NLC), has condemned the service-based electricity tariff system, which categorises users into different bands based on service provided by distribution companies, labelling it the “highest form of fraud.”
Under the scheme, Band A receives electricity for 20 hours a day, Band B for at least 16 hours, Band C for 12 hours, Band D for 8 hours, and Band E for just 4 hours.
During a budget defence session at the National Assembly, Power Minister Adebayo Adelabu claimed that 90% of users in Band A confirmed they were receiving the expected service and stated that more customers would be moved to Band A.
However, Ajaero, speaking on Channels Television’s Politics Today, criticised the idea of migrating users between bands. “The ministry is talking about migrating from Band A to Band B, that is the highest level of 419 [fraud] one can think of,” he said.
He also questioned the basis for categorising users, asking whether the bands were determined by location or the provider’s discretion. Ajaero argued that in countries aiming for 24-hour power supply, the concept of bands was unnecessary and simply a scheme to make money.
The labour leader further criticised the government for allocating funds to support private power distribution companies in the 2025 budget, suggesting the money should be redirected elsewhere. He argued that private companies should use their own funds to improve the sector.