The Nigerian electricity sector has long been a subject of dissatisfaction for its millions of consumers. Yet, despite ongoing issues, electricity distribution companies (Discos) have found new ways to aggravate their customers. One of the most alarming practices in recent times is the forced migration of consumers from Band B to Band A without their consent. This unilateral action by Discos not only undermines the principle of “willing seller, willing buyer” but also constitutes a blatant disregard for consumer rights. It highlights the systemic exploitation that continues to plague Nigeria’s power sector, where the end-user remains at the mercy of inefficient service providers.
Understanding the Tariff Band System
The tariff band system introduced by the Nigerian Electricity Regulatory Commission (NERC) divides consumers into different categories (Bands A, B, C, D, and E), based on the average number of daily hours of electricity they receive. Consumers in Band A, for example, are promised 20 hours or more of daily supply and pay the highest tariffs. Those in Band B, on the other hand, receive between 16 and 20 hours of power daily, with a slightly lower tariff. The system is designed to ensure that consumers pay rates that correspond to the level of service they receive.
However, the recent migration of consumers from Band B to Band A, without adequate consultation or improvement in the hours of electricity supplied, constitutes an unjust price hike disguised as service reclassification. This action, which forces consumers to pay higher tariffs while still receiving the same substandard service, amounts to nothing less than exploitation.
Violation of the “Willing Seller, Willing Buyer” Principle
At the heart of any market-based economy is the principle of “willing seller, willing buyer,” which assumes that transactions should only occur when both parties voluntarily agree to the terms. This principle gives consumers the power to choose the products and services that meet their needs, based on clear and transparent information about price and value. Discos’ decision to migrate consumers from Band B to Band A, without their consent, represents a direct violation of this principle. By forcing consumers to pay higher rates without offering an improved level of service, Discos are taking away the consumers’ right to make an informed choice about the services they pay for.
The “willing seller, willing buyer” principle is based on fairness, trust, and transparency. Consumers are willing to pay for electricity, but only if they are given fair value for their money. The arbitrary decision to increase tariffs without corresponding improvements in service undermines these core values. It strips consumers of their autonomy and subjects them to a system where they are expected to pay more for less, with no room for negotiation or recourse.
The Impact on Consumers
For most Nigerian households and businesses, electricity is a critical resource. Consumers in Band B opted into this tier knowing that they would receive between 16 to 20 hours of electricity daily, at a rate they could manage. By migrating them to Band A, Discos are asking these consumers to pay significantly more, often without improving their service delivery. The consequences of this action are far-reaching and damaging to consumers’ economic well-being.
For households, the increase in tariffs will lead to higher utility bills, putting further strain on family finances already stretched by inflation, unemployment, and the rising cost of living. For businesses, particularly small and medium-sized enterprises (SMEs), the sudden increase in electricity tariffs will erode their profitability, forcing them to either cut costs or pass on the extra expenses to their customers. In both cases, the forced migration from Band B to Band A is not just a financial burden, but a destabilizing factor that could further deepen Nigeria’s economic woes.
Lack of Accountability and Transparency
One of the most troubling aspects of this migration is the complete lack of accountability and transparency from the Discos. In most cases, consumers are not informed about these changes until they receive their inflated bills, leaving them in shock and frustration. There is no consultation, no explanation, and no opportunity for consumers to challenge or contest these tariff changes. The entire process reeks of arrogance and disregard for the rights of the people who are supposed to be the beneficiaries of these services.
Discos have failed to communicate with their customers in a manner that is transparent or respectful. In a functioning market, such arbitrary changes to pricing or service levels would not be allowed to happen without clear justifications and proper engagement with consumers. But in Nigeria’s electricity sector, where regulation is weak and enforcement even weaker, Discos continue to take advantage of the system, leaving consumers powerless and voiceless.
Regulatory Failure: Where Is NERC?
The Nigerian Electricity Regulatory Commission (NERC) was established to protect consumer interests and ensure fairness in the electricity market. However, NERC’s failure to intervene in this matter raises serious questions about its ability to fulfill its mandate. The forced migration of consumers from Band B to Band A should have triggered an immediate investigation and intervention from the regulator. Instead, NERC has remained conspicuously silent, allowing Discos to continue their exploitative practices unchecked.
NERC must step up to its responsibility and address this growing issue. It must mandate that Discos revert consumers back to their original bands or provide clear, verifiable reasons for any changes in tariff bands. Additionally, NERC should ensure that any future migrations are carried out transparently, with full consultation and agreement from consumers. Without strong regulatory oversight, Discos will continue to exploit Nigerian consumers, and the power sector will remain mired in inefficiency and distrust.
The Way Forward: Consumer Rights and Advocacy
Nigerian consumers deserve better. They deserve a power sector that respects their rights, offers them clear choices, and delivers on its promises. The forced migration from Band B to Band A is a clear violation of these rights, and consumers must demand accountability from both the Discos and the regulatory authorities.
Consumers need to organize and advocate for their rights through collective action, petitions, and legal recourse if necessary. They must demand transparency from the Discos and insist that the principle of “willing seller, willing buyer” be upheld. Additionally, consumer protection groups and civil society organizations should take up this cause and pressure NERC to enforce fair practices in the electricity sector.
Conclusion
The forced migration of consumers from Band B to Band A by Discos is not only an exploitation of the public but also a violation of the fundamental principle of “willing seller, willing buyer.” This practice reflects the deep-rooted issues of transparency, accountability, and fairness that continue to plague Nigeria’s power sector. Consumers have the right to expect value for the services they pay for, and any changes to the terms of their service should be carried out with their consent.
It is time for Nigerian consumers to demand better from the Discos and the regulatory authorities. The power sector cannot continue to operate in a way that exploits consumers and leaves them without a voice. If Nigeria is to develop a functioning and fair electricity market, the rights of consumers must be prioritized, and the principle of “willing seller, willing buyer” must be respected.
