Nigeria’s power sector is losing billions of naira annually to energy theft, outdated infrastructure and weak oversight, according to the President of the Nigeria Consumer Protection Network, Kunle Olubiyo.
Speaking with the News Agency of Nigeria in Abuja, Olubiyo said the problem cuts across the entire electricity value chain, from generation to distribution. He noted that illegal practices such as meter bypass, unauthorised connections and non-payment for electricity continue to deprive the sector of much-needed revenue.
“Whether through metre bypass or illegal connection, many customers are using electricity for free. That is energy theft,” he said.
Beyond consumers, Olubiyo alleged that inefficiencies within the sector also contribute to losses. He pointed to faulty and outdated metering systems used by power operators, warning that inaccurate measurements can distort electricity records and fuel questionable subsidy claims.
“If 4,000 megawatts is generated and 7,000 megawatts is recorded, that is energy theft because the excess energy does not get to consumers,” he stated.
The consumer advocate further claimed that some maintenance and repair projects are plagued by inflated contract costs, particularly when power infrastructure is damaged or vandalised.
“When transmission towers collapse, or infrastructure is vandalised, there is often a chain of beneficiaries from the repair contracts,” he told NAN.
Olubiyo said inadequate investment by some distribution companies has left critical infrastructure in poor condition, with faulty transformers and other equipment often remaining unrepaired for long periods.
He also warned that illegal electricity connections expose both consumers and power workers to serious dangers, including electrocution, fires and system failures.
To reverse the trend, he urged authorities to embrace modern technology and strengthen enforcement measures. According to him, tools such as smart meters, advanced monitoring systems and GPS-enabled tracking can significantly reduce theft and vandalism.
“Technology has a major role to play in ending energy theft and vandalism. Smart metering and proper monitoring systems will go a long way in reducing losses,” he said.
Olubiyo maintained that unless urgent steps are taken to tackle corruption, infrastructure decay and weak regulation, Nigeria’s electricity sector will continue to face financial losses and unreliable power supply.