Nigeria’s power distribution companies (DISCOs) are implementing a revenue-driven distribution strategy amid a severe nationwide electricity shortage, leaving millions of consumers with minimal daily supply. Power generation has dropped to approximately 2,900 megawatts for a population exceeding 200 million, forcing DISCOs to prioritize high-revenue customers and exacerbating disparities across user bands.
According to an anonymous staff member of the Abuja Electricity Distribution Company (AEDC), the company is deliberately focusing supply on Band A feeders—customers who pay higher tariffs—to meet financial targets and remain operational. “The strategy is simply to stay afloat and avoid collapsing while the power shortage lasts,” the staff explained. Band B and C customers, who constitute the majority of residential users, are experiencing significantly reduced or no supply, sometimes limited to four or five hours or only during late-night periods. “If they want more electricity, they must pay for it,” the staff added, noting that the situation will persist as long as generation remains low.
This policy has drawn criticism from affected communities. Residents of Ushafa in Abuja, previously on Band A, reported being downgraded and receiving erratic power. A resident relayed advice from an AEDC officer confirming that limited allocation forces the company to divert electricity to higher-paying areas like Durumi Village to avoid sanctions. AEDC later acknowledged the issue in a customer message, citing a “decrease in allocation from the national grid” and apologizing for the inconvenience.
Similar challenges are reported in other regions. Zainab Badamasi Shakallo, a small business owner in Kano, described receiving less than an hour of power over several days under the Kano Electricity Distribution Company (KEDCO). She highlighted a lack of communication from the utility, especially during Ramadan and the hot season.
The crisis stems from longstanding issues in Nigeria’s power sector, including inadequate generation, transmission constraints, and DISCOs’ financial distress. Industry observers note that without significant increases in power output or sector-wide reforms, the prioritization of revenue-generating customers is likely to continue, deepening the hardship for most households and businesses.
