The Nigerian Independent System Operator (NISO) has raised an alarm over the growing rate of electricity theft in the country, revealing that more than 68 per cent users now bypass their prepaid meters to consume electricity without paying.
The startling revelation came on Thursday during the fifth annual conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja, where experts and stakeholders debated the urgent need for a fair yet sustainable electricity tariff system.
According to NISO, the widespread meter bypassing has further deepened the sector’s financial troubles, as distribution companies struggle to recover revenue amid already declining payment compliance.
The Managing Director of Mainstream Energy Limited and board member of NISO, Audu Lamu, said the nation’s worsening economic hardship was fueling energy theft among consumers.
Represented by NISO’s Chief Executive Officer, Abdu Bello Mohammed, Lamu explained that inflation, unemployment, and dwindling purchasing power had left many Nigerians unable to afford their utility bills.
“Energy poverty in Nigeria is not only about lack of access but the inability of citizens to afford reliable supply,” Lamu noted.
“For millions of households, being connected to the grid does not guarantee power, and when it does, the cost remains out of reach.”
Lamu emphasized that while Nigeria must embrace cost-reflective tariffs to sustain the power market, such adjustments must not worsen the plight of poor and vulnerable citizens.
He recommended that the government adopt targeted subsidies and lifeline tariffs to ensure only low-income households benefit, rather than maintaining the costly and inefficient blanket subsidy model.
“We need to strike a balance between financial sustainability for operators and social fairness for consumers,” he added.
“Properly designed, data-driven rebates can keep electricity affordable without bankrupting the system.”
The NISO boss further blamed inefficiency within the power value chain for the persistent high tariffs, calling for urgent measures to reduce technical and commercial losses across distribution companies (DisCos).
Echoing similar concerns, NISO’s General Manager, Ali Bukar, lamented that the high rate of meter bypassing was threatening the very foundation of the electricity market.
“Over two-thirds of Nigerian consumers are stealing power through meter bypassing or illegal connections,” Bukar stated.
“This widespread theft is crippling the sector’s revenue flow and discouraging investment. We must adopt technology-driven enforcement to track and punish offenders.”
The Chairman of PCAN, Obas Esiedesa, described the situation as a reflection of the structural weaknesses plaguing the power sector since its privatisation more than a decade ago.
“The industry remains burdened by an estimated ₦6 trillion debt owed by the federal government to generation companies,” Esiedesa said.
“Liquidity gaps, poor gas supply, fragile transmission infrastructure, and unstable exchange rates continue to stifle progress.”
He added that while investors insist on cost-reflective tariffs to remain in business, millions of Nigerians still endure epileptic power supply or rely on costly self-generation using diesel and petrol.
Energy experts at the conference warned that unless Nigeria adopts a comprehensive approach that combines strong enforcement with social protection and realistic pricing, the power sector may remain trapped in a cycle of inefficiency and debt.
They argued that achieving a stable and affordable electricity market would require honesty, transparency, and innovation from both regulators and consumers.
“Without addressing energy theft, liquidity shortfalls, and weak infrastructure simultaneously, Nigeria’s dream of reliable power supply will remain elusive,” one analyst concluded.
Post a Comment
Drop Your Comment In The Box Below