The Federal Government has revealed that over 68 percent of electricity consumers in Nigeria are bypassing their prepaid meters and consuming power illegally without payment.
Gatekeepers News reports that the disclosure was made in Abuja during the 5th Annual Conference of the Power Correspondents Association of Nigeria (PCAN) by the Nigerian Independent System Operator (NISO).
Stakeholders at the event warned that the widespread energy theft further deepens Nigeria’s power sector liquidity crisis, as utilities already struggling with poor revenue collection now face mounting losses.
Speaking at the conference, the Managing Director of Mainstream Energy Limited and NISO board member, Audu Lamu, represented by the Managing Director/CEO of NISO, Abdu Bello Mohammed, attributed the trend to Nigeria’s harsh economic realities.
“Rising inflation, unemployment, and declining purchasing power have eroded the ability of households and businesses to meet even basic utility costs,” he said.
“Millions of Nigerians lack access to reliable electricity, and for many, the cost of energy remains beyond reach. Energy poverty is not just about connection but affordability.”
Lamu stressed that while cost-reflective tariffs are inevitable, they must be implemented in a manner that protects the poor.
“Properly designed lifeline tariffs and data-driven, welfare-linked rebates can protect low-income consumers while allowing the market to function efficiently,” he suggested.
He called for targeted subsidies that benefit only vulnerable groups, arguing that blanket subsidies perpetuate inefficiency. Lamu also urged power firms to reduce technical, commercial, and collection losses, which drive up tariffs.
On his part, NISO General Manager, Ali Bukar, lamented the rising incidence of energy theft, saying:
“Over 68 percent of consumers are bypassing meters or engaging in other forms of power theft. This level of meter bypassing is undermining the financial stability of the sector.”
Bukar called for stricter enforcement and the use of technology to detect and deter electricity theft.
Also speaking, PCAN Chairman, Obas Esiedesa, said that more than a decade after power sector privatisation, tariff balancing remains a major challenge.
“The industry is still weighed down by an estimated N6 trillion debt owed by the federal government to power generation companies,” he noted. “A massive liquidity gap persists, worsened by gas shortages, weak transmission infrastructure, and rising foreign exchange costs.”
Energy analysts at the event warned that without a holistic approach combining enforcement, consumer protection, and efficient pricing, the Nigerian electricity market would continue to operate below its potential.
