Nigerian electricity distribution companies (DISCOs) are implementing a Revenue-Based Allocation Strategy, prioritising customers in higher-paying tariff bands as the nation faces a severe power supply deficit. This approach, described by a company insider as a survival tactic, is deepening the hardship for millions of consumers in lower-paying bands.
National power generation has reportedly fallen to approximately 2,900 megawatts for a population exceeding 200 million. Most Nigerians now receive only two to three hours of electricity daily, with DISCOs frequently citing transmission constraints as the cause.
Under this stratified system, customers classified as Band A—who pay higher tariffs—receive preferential supply when grid allocation is low. A staff member from the Abuja Electricity Distribution Company (AEDC), speaking anonymously, confirmed the policy. “The strategy is simply to stay afloat… You cannot continue to supply power to customers who are not generating enough revenue,” the staff explained, noting that even Band A customers are not fully satisfied under current generation levels.
Residents in lower bands, such as Band B and C, are experiencing drastic reductions in supply. Communities like Ushafa in Abuja report power being diverted for up to 20 hours a day, with supply sometimes restricted to brief periods overnight. A resident relayed advice from an AEDC officer suggesting the community petition to be reclassified as Band A to regain priority.
An AEDC customer service message acknowledged the reduced allocation from the national grid and stated that “load shedding is being implemented to ensure that all customers receive some level of supply.” However, for many, this translates to minimal or no daily service.
The crisis has tangible economic consequences. Small business owners, like Zainab Badamasi Shakallo in Kano, describe abandoning reliance on the grid. “We had light yesterday afternoon, for less than an hour,” she said, highlighting a lack of communication from her distributor, KEDCO.
With generation output stagnant and distribution companies under pressure to meet financial targets, the revenue prioritisation strategy is expected to persist. The anonymous AEDC staff offered a bleak outlook: “There is no hope for now. The situation may even get worse.” The power sector’s debt burden and operational strain suggest the supply gaps and their stratified impact will continue, affecting household livelihoods and business operations nationwide without immediate intervention.
