Perfecting electricity theft

To understand how electricity theft worked, our correspondent spent two months with a source in his CMD home in the Kosofe Local Government Area.

The source had hinted to this reporter during an online conversation that his compound had agreed to illegally ‘tap’ power from the pole, bypassing their meters. This was after our correspondent asked how he was coping with the increase in the electricity tariff.

On the first day of the meeting, an electrician, one Moses, who claims to work with Ikeja Electric, was contacted.

On arrival, he assessed the situation and with a stern look, immediately gave an estimate of what it would cost.

“Na 50k una go pay. That is the normal money for direct light,” he blurted.

He also noted that the compound was to buy an electricity unit worth at least N35,000 to recharge their meter before the connection would be done.

As an insider, our correspondent watched from a safe distance as the electrician performed his magic.

A ladder was dragged in through the black gate by a lad, as Moses, with precision, opened and tampered with the metre box.

He skillfully climbed up the pole, made some markings and work began.

Minute by minute, he tickled with the wires, squeezed their edges and bound them together with duct tapes, connecting them automatically.

The sight looked scary, as the wires were bare, but that did not seem to matter to any of the men who patiently watched.


After a few minutes, Moses asked that the light be turned off from the junction box.

He reconnected a new changeover switch, with up being ‘direct’ (illegal) and down being the metered connection.

It was meant to be a test-run, first for just a week, and our correspondent watched as the residents used electricity they were not paying for.

After a few days, on Sunday, May 16, 2024, power suddenly went off in the middle of the night.

After several hours of waiting, one of the neighbours (name withheld) posted on the WhatsApp group that it seemed the connection had an issue.

Moses was called but he did not seem to respond to the calls, according to the neighbours.

After two days without power, another neighbour, a mother of three boys, (name withheld), asked that a new electrician be brought in to run a check.


The new electrician, according to the source, found out that the connection was not properly done and that the compound had a debt of N30,000 on one of the meters used for the connection, which he advised that they pay.

“The electrician did not connect this thing well o. See as e do am na. Ko da na! (It is not good!) He is not supposed to open this box. It is the one on the pole that he is supposed to open and adjust from. He adjusted the wrong thing,” he said, asking to be ‘mobilised’ (paid) to carry out another connection.

“Na still N50,0000. That is the same money that you will pay. It is like that everywhere. I will collect N30,000 because of your previous experience.”

The compound of six flats paid N5,000 each and a new connection was done that night.

For three weeks straight as our correspondent was on and off the premises, the residents did not pay for power.

Our correspondent, watching from a distance in the IE van, saw as one of the neighbours was served a letter and asked to visit the office at the Aladelola Close, Ketu, for questioning and clarification.

One of the officials, who did not want to be named because he was not authorised by his bosses to speak to the press, thanked our reporter, adding that the company was losing a lot of money to energy theft.

“We are tired of complaining. Many Lagosians don’t pay for the electricity consumed. They bypass their meters, sometimes, manipulating their bills. We will not stop until we clamp down on them all,” he said.

Six flats, no bill in nine months

On Tuesday, July 23, 2024, while about to carry out another round of enforcement, our correspondent was called by one of the officers to join the team in the Alapere area of Lagos State.

A troubling revelation unfurled – A compound of six flats bypassed their meter and had not been paying for power for over nine months.

“From what I can see here, the last time they bought power was around September or so last year. Up until today (Tuesday), these guys have been using free light. How will the system work?” he queried.

One of the residents, who refused to disclose his name when approached for an interview said, “I don’t know what this man is talking about. We don’t use their light. We have our own generators and we use them. We just decided that we won’t recharge their meters again. Is that a crime?”

However, another resident, who said her name was Nnenna, sang another tune, contradicting her neighbour.

She said, “This thing is not supposed to get to this level. Oga journalist, na all of us dey this Nigeria. Help us beg your people. We are together. Make we settle this thing.”


The angry officers served the compound a notice and left in their van with our correspondent.

Privatisation of power sector

The privatisation of the power sector in 2013 brought about the division of Power Holding Company of Nigeria into three, namely; the Generating Companies, Transmission Company of Nigeria and the Distribution Companies.

To understand the extent of the detrimental effect of electricity theft on the power sector, the link between the three and power efficiency must be established.

The GENCOs are responsible for transforming hydro and gas power into electricity and transmitting this electricity to the TCN; the TCN uses its transmission grid to collect bulk electricity from the GENCOs and transmit it to the Discos; and the Discos buy electricity from the TCN for onward distribution to consumers for a price (tariff).

While the GENCOs and Discos are privately owned, the TCN is owned and controlled by the Federal Government.

Privatising the power sector was premised on the need for constant and adequate power, which is a prerequisite for promoting industrialisation and economic growth.


On this basis, the expectations from privatising the power sector included increased efficiency in the generation, transmission, distribution and billing system.

Ultimately, privatisation was expected to reduce the power sector infrastructure deficit and ensure efficient distribution. However, the expected benefits of privatisation have been limited.

The GENCOs average electricity generation stands at about 3,000 to 4,5000 MW compared to Nigeria’s installed generating capacity of 10,396 MW.

Limited access to foreign exchange as well as unfavourable exchange rate, are among the major threats to power generation.

According to latest World Bank figures, Nigeria’s average electricity consumption per inhabitant is only 150 kWh per capita, which is one of the lowest in the world.

High and regular system collapses, inadequate manpower to ensure proper maintenance of transmission equipment, and the continuous vandalisation of transmission equipment have contributed to the low electricity consumption per inhabitant.

Also, the DISCOs are said to be in huge debt and are poorly funded.


This, our correspondent gathered, is due to poor revenue collection framework and inefficient supply from the national grid.

Further, the Federal Government and the National Assembly have asserted that the privatisation process has not worked as expected.

The government also agreed to the need for urgent actions in the power sector, which will involve the review of the privatisation process.

The Federal Government has undoubtedly taken vital steps in resuscitating the electricity sector – from privatisation, intervention funds, meter procurement, and investment in new power plants to mention but a few.

However, experts argue that there is still much-needed improvement in the sector.

Energy theft

As electricity tariffs surge in Nigeria, businesses and households are finding increasingly desperate ways to cut costs.


Amidst the financial strain of rising utility bills, a shadowy economy has emerged, where the quest for cheaper power drives individuals and enterprises to bypass the official channels of electricity distribution.


This underground economy, fueled by widespread power theft, involves illegal connections directly from utility poles and tampering with metering systems.

From scaling electricity poles to hacking meters, the practices not only undermine the financial stability of electricity distribution companies but also compromise the reliability of the national power grid.

While there are other challenges confronting the power sector in Nigeria, electricity theft confronting the Discos poses a much greater challenge.

A safety expert and engineer based in Benin City, Edo State, Mr Miracle Morgan, defines energy theft as the criminal act of using electricity without paying for it.

According to him, it includes but is not limited to rigging an electricity line from the power source by bypassing the meter, unlawful direct connection to the distribution source, tampering with the meter for lower readings, billing irregularities by using employees of electricity companies and unpaid bills.

“The challenge of electricity theft therefore, must be put into consideration to the needed improvements in the power sector as it will boost supply in the nation,” he said.


According to research carried out by four researchers – Augustine Osigwe, Chukwuemeka Onyimadu, Chinedu Ikpeazu, and Adaobi Ofordeme – in their work titled, ‘Electricity theft in Nigeria: How effective are the existing laws?’, there is an overwhelming concern that if electricity theft is not controlled urgently, it will contribute immensely to a continued cycle of mounting debts and inefficiencies for not just the DISCOs but also the GENCOs.

They wrote, “There is an estimated average loss of about N21 billion annually in the power sector to energy theft.”

In 2013, for instance, Sustainable Energy for All ranked Nigeria as the 165th out of 195 countries in terms of electricity supply.

Discos have argued that electricity theft is one of the leading causes of the liquidity crisis in Nigeria’s electricity supply market.

It also claimed that a relatively large number of electricity consumers do not pay for electricity used, resulting in significant financial shortfalls.

Nextier Power’s discussions with DisCos reveal that about 10 to 18 per cent of the aggregate revenue losses are attributable to power theft.

Issues on Electricity Theft in Nigeria Electricity theft is a serious problem for the entire value chain of the power sector.


A safety expert and chief electrical officer in an oil and gas servicing firm in Port Harcourt, Rivers State, Terry Promise, stated that theft of electricity increases prices for customers and reduces safety.

Speaking to our correspondent, he said, “Power or electricity theft leads to misallocation of costs among suppliers, which can distort competition and hamper the efficient functioning of the market. operators.”

The researchers – Osigwe, Onyimadu, Ikpeazu and Ofordeme – also added that, when electricity theft occurs, the cost of purchasing electricity from the GENCOs through TCN will be higher than the revenue collected from the sales of electricity to consumers.

This is so because, according to them, electricity theft allows consumers to use electricity without paying for it. Electricity theft leaves the Discos with a huge liability.

“The Discos are unable to pay for electricity transmitted from the Gencos, which makes them reject electricity while remaining indebted to the Gencos.

“In turn, this reduces revenues to the GENCOs while increasing the cost of generating electricity. The GENCOs cannot meet their obligations to gas suppliers, rendering them highly indebted with reduced effectiveness in performing their primary function.

“Electricity theft induces a cycle of indebtedness and ineffectiveness for both the DISCOs and GENCOs.


“The occurrence of electricity theft has become dire. For instance, in 2014, the Ikeja Electricity Distribution Company (now Ikeja Electric) reported that 43,000 prepaid meters out of 134,000 installed by the company had already been tampered with by their owners in five years.

“Similarly, the Port Harcourt Electricity Distribution Company in 2017 reported a loss of about 30 per cent of expected revenue to energy theft. The distribution company noted that energy theft represented a huge revenue leakage to the company.

“Also, the Enugu Electricity Distribution Company reported a loss of about 43 per cent of its expected monthly revenue to energy theft. Further, more recently, the Eko Electricity Distribution Company reported that it was losing over N1.2 billion monthly to energy theft and commercial losses in its network.”

Band-A tariff hike

Earlier in the year, Nigeria witnessed a significant adjustment in its electricity tariff, particularly affecting customers under Band A.

The Nigerian Electricity Regulatory Commission approved an increase, setting the tariff at approximately N225 per kilowatt-hour (kWh) for Band A customers, who are typically households and businesses receiving up to 20 hours of electricity per day.

This decision was part of broader regulatory measures aimed at achieving cost-reflective tariffs in the country.


The increase in tariffs was driven by several factors, including the rising cost of natural gas, a key input in electricity generation.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority raised the base price for natural gas from $2.18 to $2.42 per metric million British thermal unit, reflecting global energy price trends.

This adjustment, alongside other operational costs, necessitated a review of electricity tariffs to ensure the sustainability of the power sector.

For consumers, particularly those in Band A, the tariff hike represents a substantial increase in electricity expenses.

This change comes at a time when Nigeria’s economy is grappling with various challenges, including high inflation rates, fluctuating exchange rates, and general economic instability.

The increased cost of electricity can exacerbate the financial strain on households and businesses, potentially leading to higher operating costs for businesses and increased living expenses for families.

The tariff increase also brings to light the issue of electricity affordability and access.


While the Band A category is often associated with more affluent consumers or businesses, the overall economic environment means that even these groups may feel the financial pinch.

And feeling the pain of this Band A categorisation is the health sector.

The newly implemented tariff hike is crippling essential services in tertiary and private healthcare facilities, leaving them struggling to survive and on the brink of imminent shutdown.

Teaching hospitals and privately-owned healthcare facilities are in a desperate battle to stay afloat in the face of escalating costs, which threatens the very core of patient care.

Recently, hospital administrators decried the huge cost of operations, lamenting that they were struggling to keep essential services running, and that patients were the ones bearing the brunt of the crisis.

Amid this, there is a broader concern that other bands, particularly those with less reliable power supply, might also face tariff hikes in the future, further burdening lower-income households and small scale businesses.

NERC’s addresses concerns

In response to concerns about fairness and service quality, NERC implemented several measures. These include stricter monitoring of service delivery commitments by electricity distribution companies.

Discos are required to maintain a minimum service level for their customers, and failure to do so can lead to penalties or the downgrade of customers to lower tariff bands, which are associated with lower service expectations.

Customers categorised as Band A, now pay over N209 per kilowatt-hour instead of N68/kWh following the removal of electricity subsidies.

Additionally, NERC also mandated the rapid deployment of metering infrastructure to prevent overbilling and ensure transparency. This initiative is crucial as metering has historically been a contentious issue in Nigeria, with many consumers billed on estimated consumption rather than actual usage.

The tariff increase also reflects a broader shift towards market-based pricing in Nigeria’s energy sector. While this approach aims to improve the financial health of the electricity market and attract investment, it poses significant risks for consumers, particularly in a country with a high poverty rate and limited social safety nets.

To mitigate the impact, the Nigerian government and NERC have been exploring various measures, such as subsidies for vulnerable consumers and incentives for energy efficiency.

However, the success of these measures depends on effective implementation and robust regulatory oversight.


An economist and tax expert, Mr Dayo Adedayo, stated that the electricity tariff increase for Band A customers in Nigeria was a significant policy shift aimed at creating a more sustainable energy sector.

However, for him, it also highlights the ongoing challenges of affordability, service delivery, and regulatory compliance in the country’s power market.

He added, “As Nigeria continues to navigate these complex issues, the balance between economic viability for service providers and affordability for consumers will be critical in ensuring a stable and equitable electricity supply.”

Energy theft too much, IKEDC laments

On Saturday, IE lamented the rise in energy theft in the past three months of the Band A tariff increase.

This is even as the DisCo threatened that offenders caught in the act of energy theft would be immediately charged, reiterating that the era of merely imposing loss of revenue penalty alone on offenders was over. The company made this announcement at its July stakeholders forum.

In a statement published on its website, IE’s Head of Corporate Communication, Kingsley Okotie, lamented the increase in energy theft, “especially over the last three months following the implementation of the reviewed tariff on Band A feeders”.


Okotie noted that the company and the entire electricity value chain cannot survive if energy theft goes unchecked.

“The theft is massive and the company cannot guarantee meeting customer expectations if this ugly trend continues.

“Ironically, some perpetrators believe that if they haven’t been caught, there are no consequences. This is false, and we must change the narrative,” he said.

Whistleblowing platform

Speaking on the strategies to curb theft, the company’s spokesman mentioned that a whistle-blowing platform had been created for customers and well-meaning Nigerians to report incidents anonymously.

He added that the platform is managed independently of the business, ensuring customers’ identities remain anonymous and highly confidential.

In 2022, the Executive Director of Research and Advocacy for the Association of Nigerian Electricity Distributors, Chief Sunday Oduntan, highlighted the severe impact of energy theft on service delivery during an interactive session with electricity consumers in Ibadan.


The Eko Electricity Distribution Company, that same year, reported a 21 per cent increase in energy theft cases, with over 21,000 incidents recorded over the past five years, resulting in revenue losses running into billions.

Wola Joseph, EKEDC’s Chief Legal Officer, noted that areas like the Agbara district face an average of 32 energy theft incidents monthly, costing nearly N4m, with total losses exceeding N35m annually.

Similarly, the Jos Electricity Distribution Company, reported significant losses due to energy theft, with CEO Bello Mohammed, indicating that only 59.67 per cent of customers with prepaid meters responded, leaving a 40.33 per cent non-response rate.

This non-compliance, coupled with illegal connections, leads to an estimated loss of N2bn monthly, with 350 cases of bypasses detected each month.

These issues have been noted to continually challenge Nigeria’s electricity sector, hindering revenue generation and service improvement.

Adedayo, further speaking on the matter, stated that Nigerians, knowingly or unknowingly, defraud the electricity supply market through various illegal practices.

He stated that non-payment of electricity bills is a major issue for Discos.

According to him, many consumers fail to pay their bills in full, creating a significant revenue shortfall for the utilities.

He said, “Another prevalent problem is the manipulation of electricity bills, which involves altering the bill amounts through corrupt practices. This typically requires the collusion of utility staff, who may be bribed by customers to adjust their bills fraudulently.

“Meter tampering is also a serious concern. Some customers manipulate their electricity meters to either inaccurately report their consumption or bypass the meter altogether. Reports from Nextier Power indicate that by mid-2019, approximately 50 per cent of meters installed between 2016 and 2018 had been tampered with.”

What the law says

The Nigerian legal system makes provision for the prohibition of electricity theft and also imposes penalties for perpetrators of the offence.

Section 94 (3) of the Electric Power Sector Reform Act (2005) provides that ‘Notwithstanding anything contained in any other law, any person who willfully destroys, injures or removes equipment or apparatus of a licensee commits an offence and is liable on conviction to imprisonment for not less than five years and not more than seven years.’

The Miscellaneous Offences Act also consists of provisions dealing with tampering with electrical equipment.

Section 1(9) of the MOA provides that “any person who unlawfully disconnects, removes, damages, tampers, meddles with or in any way whatsoever interferes with any plant, works, cables, wire or assembly of wires designed or used for transforming or converting electricity shall be guilty of an offence and liable on conviction to be sentenced to imprisonment for life”.

Section 1(10) of the MOA additionally provides that “any person who unlawfully disconnects, removes, damages, tampers, meddles with or in any way whatsoever interferes with any electric fittings, meters or other appliances used for generating, transforming, converting, conveyancing, supplying or selling electricity shall be guilty of an offence and liable on conviction to imprisonment for a term not exceeding 21 years”.

Additionally, under section 96 (2) of the EPSRA (2005) which confers power to make regulations on NERC, the regulator has made several regulations, of particular importance is the regulation to deter the theft of electricity, theft and destruction of electricity supply infrastructure, and penalties for such theft.

The NERC Theft and Other Related Regulations (2014) stipulates in Regulation 1 that “anyone who willfully and unlawfully connects to overhead, underground, or underwater lines, cables, service wires, or facilities of a licensee; or tampers with a meter, uses a tampered meter, install a current reversing transformer, use shorting wires, loop connections, or any device that interferes with accurate metering, or bypass a meter to receive electricity without proper registration” has committed an offence.

It also stated, “Anyone who damages or destroys an electric meter, equipment, wire, or conduit, causing interference with accurate metering or consumption of electricity without authorization will be guilty of an offence under Sections 383 and 400 of the Criminal Code, Section 286 (2) of the Penal Code, and Section 1 of this Regulation”.

Penalties include imprisonment as specified in Section 390 of the Criminal Code, Section 287 of the Penal Code and Section 94 of the EPSR Act.

Smart metering

To curb electricity theft in Nigeria, especially during periods of increased tariffs, Morgan stated that the Discos must deploy advanced metering infrastructure.

He said, “Invest in smart meters with real-time monitoring capabilities to detect tampering or unauthorised usage immediately.

“Use data analytics to identify unusual consumption patterns and schedule regular physical inspections of meters and connections to catch tampering early.”

Stricter enforcement

A lawyer, Mrs. Sodienye Jumbo, also suggested strict enforcement of regulations and collaboration with law enforcement.

She said, “Increase enforcement of the NERC Theft and Other Related Regulations, with regular audits and stricter penalties for offenders.

“Work closely with law enforcement agencies to ensure swift prosecution of theft-related crimes and to deter potential offenders.”

Jumbo also advised Discos to run awareness campaigns to educate consumers about the legal consequences of electricity theft and the importance of paying bills.

When will Nigerians stop buying transformers, pay for fault repair and pay for darkness

Hmm. It is well ..

Fact is that the DISCOs don't have the business will to fight meter tampering. They are not running the DISCOs as a private business, they retained NEPA workers with terrible behaviour.

There should be a monthly monitoring and they should hire good people cos some of their staff are partners in this crime. It is very easy to spot a house that bypassed a meter.

DISCOs also steal from customers too. I get 6 hours daily and should be on a much lower band but my DISCO placed me on BAND B, which means I am paying more than what I should pay. I have complained to them for many months, yet no solution. Last month, they admitted I was placed on the wrong band category and they will fix it. Two days ago, I recharged and found out that they have not fixed it. I sent a whatsapp message to their staff, no reply on the issue as I am writing this.

Yeyenatu, for close to 31 days now, we don’t have electricity, still the clueless Ekedc are still dishing out the bills every month. No one will pay

Energy theft too much, IKEDC laments

“Work closely with law enforcement agencies to ensure swift prosecution of theft-related crimes and to deter potential offenders.”


Some of those stealing electricity are here right now reading this investigative report that exposes their crimes. Repent of your crime today. Don't wait till you get jailed.

May God bless Nigeria for ever! Check my signature for free stuffs!

========================================
" On that Saturday afternoon in May, Mrs Ufuoma Dominic seemed agitated, scolding her workers for failing to switch over from the metered connection to the ‘direct’ (illegal) one for three days.

“Do you people want to kill me? I spend N3,000 every day on power alone. *What do I have in this shop if not the sewing machines and this small fridge?” she exclaimed, gesturing towards a deep freezer quietly humming in the corner, where she stored her mop stick.

“You people know how I suffered to get this meter so I can escape this NEPA (Disco) people from disturbing me with crazy bills. Now, imagine what you have caused me. The N15,000 that I recharged and meant to manage for one month, you people have finished it in three days because I travelled. "

She shamelessly called a deep freezer that guzzes electricity "small fridge" Smh.

She would rather steal electricity to power the deep freezer than abandon the freezer yet she's wondering why her business is failing and hardly makes a single sale per day.
She is already reaping what she sows. She is probably somewhere hypocritically blaming our leaders yet she's not different from a common thief 🙄

All the enemies of Nigeria will lose las las. They always lose. God bless Nigeria for ever! Check my signature for free stuffs!

Omo people are suffering, they should reduce the light bill

I wonder how a normal human being would happily spend over six months enjoying for free a service which costs a lot of money to produce!

Na Tinubu cause am

This country sef will make an innocent person desire to be wícked.

Lol. And this set of people will be among those who curse and criticize the government for doing the exact same thing they're doing. I mean, what manner of hypocrisy is this. And these people want a Nigeria that works. What a joke.

These are the same people who are planning massive protests...
Foolish things...
Before we can change the bad government... We must change our bad ways...

FreeStuffsNG:
Energy theft too much, IKEDC laments

“Work closely with law enforcement agencies to ensure swift prosecution of theft-related crimes and to deter potential offenders.”


Some of those stealing electricity are here right now reading this investigative report that exposes their crimes. Repent of your crime today.
May God bless Nigeria for ever! Check my signature for free stuffs!

Energy theft has worsened because everyone is looking for free stuffs! 😂

But on a more serious note, the cost of living crisis is pure madness. Almost everyone is on survival mode

So na me go read all this rubbish wey you copy and paste abi?

U finished salary on transportation alone, comeback house no money to recharge and the small food you get for freezer dey spoil. Wetin remain to do?

And when hunger don hammer NEPA staff, na them go dey beg you to pay money make them help you do bypas

I work in the public sector and I can say for a fact that electricity cannot be stolen without the collaboration of some staff of the utility company.

You will see a staff from a distribution company coming to tell a customer that he can help them do a meter bypass at a certain cost. Very shameful thing

If u chase money, money will keep running from u and no matter what amount u make, u will still be basking for more...

There is a simple solution to this which seems very difficult for so many people to follow. Bible says..." Seek ye first the kingdom of God and his righteousness and every other thing will be added unto u." That was what God asked me to do, and I did it. Just in 1yr plus, he made me very rich again...

All I did was just go to the 3 specific places He asked me to go and preach His word and he moved my business to success over 300% times better than before.

U don't need to steal from anyone including NEPA to succeed in life. U don't need to scam anyone inorder to be announced in life. Sincerely u only need JESUS CHRIST the Son of God Almighty to succeed. Try Him today and u will see a great difference.

For tips on how to Grow in the Lord or become wealthy, feel very free to chat me up. I will show u the road but be prepared to hold on to JESUS CHRIST because He is the KEY!

Shalom!!!

Jesus loves u all.

FreeStuffsNG:
Energy theft too much, IKEDC laments

“Work closely with law enforcement agencies to ensure swift prosecution of theft-related crimes and to deter potential offenders.”


Some of those stealing electricity are here right now reading this investigative report that exposes their crimes. Repent of your crime today.
May God bless Nigeria for ever! Check my signature for free stuffs!

When will the electricity companies repent of their crimes of asking consumers to buy transformers, buy poles and charging people for darkness?

DISCOS

UNA.GO.C.SHEGE!!

Lol nothing concern me. Nigeria is a useless country

I support them

XWizard

Old Story


DISCOS Monitoring teams are not well paid and fed

Lol nothing new 80 percent of Nigerians don dey by pass no be today including Alfa, Pastors people meant to lead by examples and preach Morality....

Dennisochampa:
These are the same people who are planning massive protests...
Foolish things...
Before we can change the bad government... We must change our bad ways...

Shut up..nkpi

Nigerians always willing to defraud others/businesses

Watch the massive support the fraudsters will get on this thread

Yawn