By Fatima Zayyan
Electrical theft also known as power theft or energy theft involves using electricity without paying for it. This can be done through various methods. They include: tempering with meters, bypassing them, or making illegal connections to the power grid.
According to science direct.com. It is an illegal act that can lead to a fine or imprisonment. It is the criminal practice of stealing electrical power.
Introduction
Electricity is the backbone of modern economies. It powers industries, households, healthcare, and innovation. In Nigeria, however, a large amount of electricity is lost, not just because of technical problems, but also due to a serious issue: electricity theft. This illegal use of electrical energy has become a common problem that affects the stability and growth of the Nigerian Electricity Supply Industry (NESI).
From meter bypassing to illegal connections, electricity theft robs the country of important revenue, damages infrastructure, and scares away investors. As Nigeria continues to face unstable power supply and rising energy costs, fighting electricity theft is not just important, it is urgent.
This essay will look into the different types of electricity theft, how they affect the country, and the long-term damage they cause to the power sector and economy. It will also suggest practical solutions that can help reduce this problem and build a stronger, more reliable electricity system for all.
Forms of electricity theft in Nigeria
Electricity theft in Nigeria manifests in several forms, each with its own consequences. The most common is meter bypassing, where users deliberately tamper with their meters to reduce recorded consumption. Another widespread practice is illegal connections, where individuals or businesses connect to the power grid without proper authorization or payment. In some cases, this is done in collusion with corrupt officials from electricity distribution companies (DISCOs).
Estimated billing, which often results in overcharging, has also contributed to the public’s mistrust of the system. This has pushed some consumers to engage in illegal connections out of frustration and a sense of injustice.
Additionally, non-payment of electricity bills, whether through deliberate refusal or due to a general culture of entitlement to free services, further deepens the crisis and puts more strain on the power sector.
Implication for the Nigerian economy
The economic consequences of electricity theft are devastating. According to the Nigerian Electricity Regulatory Commission (NERC) over N 100 Billion is lost annually due to energy theft and related inefficiencies (Naira metrics, 2023) for example the Ibadan electricity distribution company (IBEDC) reported monthly losses exceeding N3 billion due to theft and meter bypass (guardians 2024).
This loss in revenue makes it difficult to discuss pay for electricity generated by gencos (Generation companies) causing a ripple effect throughout the value chain. The shortfall leads to underinvestment in infrastructure stagnation in network expansion and ultimately poor service delivery; moreover honest consumers are penalized indirectly as they discuss increasing tariff to cover operational losses.
This undermines public trust and creates a cycle of inefficiency, distrust and resistance furthermore the sector’s instability scare off local and foreign investors who see while inactive to invest in a system that cannot guarantee returns due to rampant losses and weak enforcement mechanism.
Consequences on power supply and infrastructure
Electricity theft contributes significantly to the poor state of Nigeria’s power infrastructure, illegal connections often lead to the overloading of transformers and distribution lines causing frequent failures and blackouts the strain on infrastructure reduces the lifespan of critical equipment and makes maintenance both more frequent and more expensive.
Moreover technical and non-technical losses primarily due to theft result in loss of up to 40% of generated electricity according to a 2024 report (Guardian Nigeria) this means less electricity reaches legitimate consumers, leading to low voltage issues, load shedding and a national grid that struggles to meet demand
These consequences reinforce a vicious cycle the worse the service becomes the more consumers are tempted to bypass the system leading to even further degradation.
Social and legal consequences
Beyond economy and infrastructural cost electrically theft erodes the mental and legal fabric of the society. It normalizes corruption especially when officials are complicit. It also promotes unsafe living conditions, particularly in slums and informal settlements where illegal wiring poses significant fire and electrocution.
Legally the 2023 electricity act introduced higher penalties to curb the menace under this act, first time offenders are required to pay fines amounting to three times the value of the stolen electricity, while repeat offenders pay up to six times the value as well as possible commission term of up to three years.
Despite this, enforcement remains weak and public awareness of these penalties is limited, many Nigerians connive to see electricity theft as a survival tactic rather than a crime. Changing this mindset requires education transparency and trust in the system.
Government and stakeholder response
Several effects are being made by stakeholders to address electricity theft. The Nigerian Electricity Regulatory Commission (NERC) has intensified monitoring and enforcement while promoting the installation of smart meters that are tamper proof and more accurate.
Distribution companies have also begun community engagement programs to educate customers on the dangers and consequences of theft. For instance, IBEDC and other discos regularly published data on theft causes – including b459 theft causes in just two months of 2024 (the cable)- to raise awareness and deter offenders.
Furthermore, there is increasing adoption of prepaid metering systems, which help reduce billing disputes and minimize opportunities for by-passing.
Recommendations
To reduce electricity theft in Nigeria, several key steps must be taken:
- Strengthen the legal system: Electricity theft should be treated as a serious economic crime. Stronger laws must be enforced across all regions, without bias. The judiciary should handle such cases swiftly and fairly, regardless of the offender’s status or location.
- Invest in smart technology: Smarter, tamper-proof meters should be installed nationwide. These devices must be affordable and paired with proper customer education to ensure users understand how to manage and monitor their electricity use.
- Public awareness campaigns: A nationwide awareness effort should be launched using radio, TV, social media, and posters. These campaigns should educate the public on the dangers and consequences of electricity theft and promote responsible energy usage.
- Fix estimated billing: Until all homes are metered, estimated billing systems must be fair and transparent. This will help reduce frustration among consumers and limit the temptation to bypass the system.
- Support low-income consumers: To discourage illegal connections, the government should provide subsidies or promote alternative energy solutions, such as solar power, especially for vulnerable or low-income communities.
Fatima Zayan is from Sheikh Abubakar Gummi Academy,Abuja
