Electricity Theft: FG Probes N120bn Annual Revenue Loss

The Federal Government has begun an investigation into suspected large-scale electricity theft and unaccounted power losses along the 132-kilovolt Ikorodu–Sagamu industrial corridor in Lagos and Ogun states, with the losses estimated to cost the electricity market about N120 billion every year.

The Minister of Power, Joseph Tegbe, disclosed this on Friday during a stakeholders’ meeting involving industrial operators, electricity market participants and regulators in Lagos.

The investigation was ordered after a review of electricity transmitted through the industrial corridor showed a wide gap between the amount of power supplied and the volume eventually billed and recorded by distribution companies.

According to the government, as much as 100 megawatts of electricity is currently unaccounted for along the corridor. The development has raised concerns over possible electricity theft, meter tampering, false data and other activities that may be affecting revenue in the power sector.

The Ikorodu–Sagamu corridor has become an important industrial area, with several manufacturing companies and other large electricity users operating within the axis. The government said reliable power supply to these businesses remains important to industrial growth and economic activity.

Technology used by the Nigerian Independent System Operator has also helped authorities detect unusual loading patterns and other signs of possible losses on the network. These findings have now led to calls for a detailed assessment of the power being transmitted, consumed and paid for across the corridor.

Tegbe directed relevant agencies and market operators to carry out a transparent investigation based on actual data and technical evidence. The exercise is expected to determine where the power losses are occurring and identify those responsible for any illegal activities.

The Federal Government also said it would continue to support manufacturers with a more reliable electricity supply, but insisted that improved power delivery must be accompanied by proper metering, accurate billing and accountability from electricity consumers and market operators.

The minister warned that the government would take action against practices such as meter tampering, manipulation of electricity records and interference with power infrastructure.

The investigation is expected to provide a clearer picture of the electricity losses along the Ikorodu–Sagamu corridor and help the government recover revenue being lost through unaccounted electricity.

The government’s move forms part of wider efforts to reduce losses in Nigeria’s electricity market, improve revenue collection and create a more reliable power system for industries and other consumers.