BUSINESS OUTCRY: Lagos business owners lament exorbitant bills and blackouts amid “Band A” rollout

Lagos business operators have expressed deep frustration over escalating electricity costs coupled with persistent blackouts, warning that standard utility billing practices have turned into aggressive extortion.

Speaking on Voice of the People 90.3 FM Evening Rush program on Friday, Manager representing one of Romeo’s Pizza and Cold berry ice cream outlet highlighted a stark space-versus-pricing disparity under the current energy regime of Mrs Ogochukwu Onyelucha who was formerly Chief Commercial Officer was promoted Acting Chief Executive Officer/Managing Director.

He noted that while Romeo’s Pizza operates a 250-square-meter duplex production line in Surulere for roughly 320,000 Naira monthly, a tiny 40-square-meter business outlet in the Ajao area was hit with an estimated bill of 1,124,000 Naira for a single month by Ikeja Electricity Distribution Company (Ikeja Electric). This occurs despite the Ajao business experiencing near-total grid blackouts, forcing them to power 24-hour operations entirely with a 25kVA diesel generator. With diesel costs hovering near 2,000 Naira per liter, he warned that double-paying for estimated bills and fuel is unsustainable and will force heavy staff layoffs.

Adding to the outcry, a live guest shared the grueling experience of managing KARAT 24 Hotel, a 20-room hospitality business in Festac Town. He revealed that after paying a baseline of 1.7 million to 2 million Naira early this year, the hotel’s monthly bill from the Eko Electricity Distribution Company (EKDC) suddenly skyrocketed to 3.9 million Naira for May.

The hike followed a verbal, undocumented notification that they had been shifted to “Band A.” While Band A promises 18 to 20 hours of daily supply, Mr. Michael verified the hotel rarely received up to 4 hours of grid light, forcing them to spend an additional 3 to 4 million Naira on diesel.

Furthermore, he detailed predatory billing tactics, stating that EKDC field teams deliberately omitted the hotel’s meter number from the bill to keep them on estimated billing despite having a verified, functional analog meter. After confronting management at the Festac 23 Road office to no avail, he took the issue to the EKDC Head Office in Marina. There, an official named Miss Chinyere confirmed the billing fraud and promised immediate reconnection if a goodwill payment of 3 million Naira was made. However, despite paying the 3 million Naira and providing the receipt, the hotel remained disconnected as field teams ignored the order.

Reacting to the situation, studio guest Barrister Darlington Agumuo slammed the utility crisis as a symptom of President Tinubu administration’s multi-tiered tariff reforms. He argued that regulators like NERC have previously ordered DisCos to reimburse Band A consumers for low service delivery and refund 20 billion Naira spent out-of-pocket on meters, yet these directives are actively ignored. Mr Darlington labeled the operational strategy of the distribution companies as “corruption pro-max,” warning that officials view their positions merely as a “cashing-out point” to milk local enterprises to the detriment of the public.

Watch the full broadcast here: