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Electricity Theft in Nigeria: Impact, Strategies and the Way Forward

By Okoko Chidozie Christian
chidochrisozonegold@yahoo.com; 09025179984.
Epileptic power supply has been a mainstay of Nigerian society and profoundly impacted communities, undermines the access of individuals to electricity and hampered economic growth.
And, a range of factors have been identified by stakeholders as the root causes including energy theft.
Electricity – essential part of our daily lives is used for powering our homes, offices, businesses and industries. Unfortunately, some people choose to illegally tap into it.
Illegal electricity connections, also known as “power theft” refers to the unauthorized tapping of electric from a power grid, often without the knowledge or approval of electricity providers.
According to source, electric theft is the criminal practice of stealing electric power, and it is nearly as old as electricity distribution.
Accomplished through a variety of means, from methods as rudimentary as direct hooking to a power line, to manipulation of computerized electrical meters endangering the environment.
For instance, if the power consumption in a region increases to a level where the average demand exceeds the rating of transformer or other electrical equipment due to power theft, then power quality problem like voltage collapse or transformer overloading may occur.
Frequent power cuts lead to deterioration in the customer-utility relationship. Illegal connections to the electricity network often transverse roads, fields, footpaths and present a safety risk for communities who must go about their normal daily activities into contacts with live cables and wires that have not been properly installed.
However, bypassing an electric meter co-located with fuses, circuit breakers, residual current earth leakage detection will often lead to risk of electrical faults and excessive use within the house may not be detected.
And, the supply will remain live within the house, increasing the risk of electrocution or fire. Cost of electricity is substantially compared with low income flow and credit constraints in most countries. For examples, more than 70% of Nigerians live on less than US2.0dollars per day. Yet, there is need to pay for the cost of power consumed.
So, it would appear illogical to conclude that residential consumers steal electricity thereby contributing to this loss.
According to the new Electricity Act, offenders to electric theft shall be subject to imprisonment for a term exceeding three years, a fine or both. If the load consumed or used or attempted consumption or use, does not exceed 10 kilowatts, the first conviction shall warrant a fine no less than three times the financial gain resulting from the electricity theft.
In Nigeria today, the Power Distribution Companies, DisCos face several challenges of electricity theft which remain one of the major causes of massive revenue losses thereby increases the debt profile in Nigeria Electricity Supply Industry, hence negatively impacting the nation’s economy.
Recently, Adetayo Adegbemle, executive director of Power Up Nigeria, expressed that the Senators are out of touch with the realities of the power sector and should seek advice from professionals and experts for accurate information. According to him, electricity is also not a public utility anymore, it is now a commodity.
Energy theft is an international problem and globally estimated in 2022 that consumers spent up to 1.4 billion pounds annually. This costs have to be passed to customers in the form of higher energy charges. The annual worldwide financial losses due to power or electricity theft are estimated to be around US 100billion dollars.
In a recent report by the Director of the Power Sector Advocacy Group in Nigeria; one (1) transmission company TCN, twenty-three(23) generation companies, GenCos and eleven (11) electricity distribution Companies, DisCos operates in Nigeria. Moreover, the plants are managed by generating companies (GenCos), independent power providers, and the Niger-Delta Holding Company.
Unfortunately, the twenty-three (23) power-generating plants connected to the national grid with the capacity to generate 11,165.4MWs of electricity has not been feasible. Despite having a capacity of 22,000 MWs, the country’s power generating peaked at 4,594.6 MWs as of November 2022 has been insufficient for the populace. So, the electricity generated is considerably low for over 200million people.
Although, some anti-theft products can help shield the network and consequently reduce power theft. Just like in United Kingdom, their electrification is made under subsurface about 100meters; not so easy for human to access, study confirms.
So, being a complex challenge, there are some ways to combat the illegalities of energy theft in Nigeria, but the consumers-utility relationship is a key determinant. Improvement of this relationship through local participation in development of renewable energy schemes such as rooftop solar photovoltaic, use of biomass and many more could bring benefit. Also, financing, redesigning of the distribution system and utility company codes and standards, competence in post-installation maintenance.
Strengthening of legal and regulatory framework particularly with larger users, and installing high security tampered-resistant metering systems for commercial consumers may have more effect.
News
SERAP Challenges CBN to Publish Local Government Allocations

Socio-Economic Rights and Accountability Project has called on the Central Bank of Nigeria to immediately disclose whether it has commenced the direct disbursement of allocations to the 774 local government areas in Nigeria, following the Supreme Court’s landmark judgment nullifying state governors’ control over LGA funds.
In a letter dated 10 May 2025 obtained by our correspondent, addressed to the CBN Governor, Mr Olayemi Cardoso, and signed by SERAP’s Deputy Director, Kolawole Oluwadare, the group also demanded that the bank “widely publish the amounts, if any, so far sent directly to each of the local governments” and provide a detailed explanation of any payments already made—particularly to LGAs in Rivers State.
The group stated: “We are writing to request you to use your good offices and leadership position to immediately disclose whether the CBN has commenced the direct disbursement of allocations to the 774 local government councils in Nigeria from the Federation Accounts with the CBN, and to widely publish the amounts, if any, so far sent to each of the local governments.”
This request follows a Supreme Court judgment declaring the practice by governors and the FCT Minister of retaining and disbursing LGA allocations unconstitutional and unlawful.
The court ruled that no governor or agency has the authority to interfere with allocations meant for LGAs from the Federation Account.
Citing this judgment, SERAP argued: “Local government councils are entitled to a direct payment from the Federation Account of the amount standing to their credit in the said Federation Account. States should not be collecting, receiving, spending or tampering with the local government council funds from the Federation Account meant for the benefit of the councils.”
The advocacy group expressed concern that despite the ruling, many state governors have continued to “starve local governments of funds and put them in peril,” thereby undermining their autonomy and capacity to function as the third tier of government.
In the letter, the group warned that if the CBN fails to act within seven days, it would take legal action.
“If we have not heard from you by then, the Incorporated Trustees of SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” the letter stated.
SERAP referenced a past revelation by former President Muhammadu Buhari, who in December 2022 described how governors allegedly short-changed LGA chairmen.
“If the money from the Federation Account to the state is about N100 million, N50 million will be sent to the chairman, but he will sign that he received N100 million. The chairman will pocket the balance and share it with whoever he wants to share it with,” Buhari had said.
The organisation argued that the CBN has a constitutional and statutory obligation to protect the financial interests of all tiers of government.
“The CBN ought to act in the public interest to protect the allocations in the Federation Account and the public funds disbursed from that Account directly to each of the constitutionally recognised three tiers of government,” it said.
Highlighting the March 2025 revenue distribution by the Federation Account Allocation Committee, SERAP noted that a total of N1.578 trillion was shared among the three tiers of government. It queried whether the LGAs had received their fair share directly, as mandated by the court ruling.
“Ensuring that all restrictions against direct disbursement of allocations from the Federation Account to the 774 councils are lifted will comply with the orders by the Supreme Court and stop states and the FCT from tampering with the allocations ahead of the 2027 general elections,” SERAP warned.
The group further argued that Nigerians have a legal and moral right to know how their money is being managed, referencing several legal frameworks, including the Nigerian Constitution, the Freedom of Information Act, the African Charter on Human and Peoples’ Rights, and the International Covenant on Civil and Political Rights.
“The public interest in publishing the information sought outweighs any considerations to withhold the information. Nigerians are entitled to the right to receive information without any interference or distortion, and the enjoyment of this right should be based on the principle of maximum disclosure,” SERAP stated.
The group also reminded the CBN that “the Freedom of Information Act is applicable and applies to public records in the Federation, including those kept by the CBN.”
News
CFUIS Expands to Nigeria, Boosting U.S. Immigration and Business Opportunities

Center for U.S. Immigration Services (CFUIS), a premier legal firm specializing in U.S. immigration law and global mobility, has officially launched operations in Nigeria—marking a strategic move to bridge Africa’s talent and business potential with opportunities in the United States.
Led by Nigerian-American attorney Dr. Martins I. Imudia, the expansion positions CFUIS as a trusted legal and business partner for individuals and organizations across the continent seeking expert guidance on U.S. immigration, workforce mobility, and international expansion.
Headquartered in Tampa, Florida, and having other offices at Bradenton, Clearwater, Dearborn, Fort Myers, Jacksonville, Miami and Orlando.
CFUIS offers a full suite of immigration services, including employment and family-based petitions, naturalization, deportation defense, and global mobility consulting. Under Dr. Imudia’s leadership, the firm has become known for its culturally sensitive, results-driven approach that not only simplifies complex legal processes but also opens doors for global opportunity.
Whether advising multinational companies on workforce mobility or assisting individuals seeking lawful permanent residency, CFUIS provides tailored solutions grounded in empathy and precision.
The new Nigeria office will serve as a vital gateway for clients looking to access U.S. markets, relocate talent, or expand their business footprints.
Dr. Martins I. Imudia is a seasoned legal practitioner born in Oza-Nogogo, Delta State, Nigeria. A respected authority in immigration and global development, he is also the CEO of Siotoh Holdings LLC, a diversified business group overseeing ventures such as Siotoh Academy, Siotoh Global Mobility, and Otawise Technologies.
His business interests are rooted in innovation, entrepreneurship, creating economic opportunities and economic empowerment—creating practical solutions for a rapidly evolving global economy.
Beyond legal and business pursuits, Dr. Imudia is a champion of humanitarian development and a philanthropist.
He founded the Imudia Foundation to support vulnerable populations through healthcare access, social infrastructure projects, and community empowerment.
In a continued demonstration of this commitment, he co-founded Oza Invest Limited to drive capital investment and economic revitalization in his hometown, bringing a practical model of sustainable development to life.
For Dr. Imudia, service to mankind is the highest calling. His guiding philosophy revolves around leveraging his skills and resources for the common good. Whether through legal advocacy, business initiatives, or philanthropic efforts, he remains steadfast in his mission to uplift communities, empower individuals, and create lasting social impact.
In his latest initiative, Dr. Imudia has partnered with the Delta State Government to establish a vocational training school aimed at addressing unemployment and equipping youth with in-demand, job-ready skills.
The school, a project of Siotoh Academy, is now accepting registrations and offers a unique opportunity for individuals and families seeking long-term economic stability through practical education.
This initiative reflects his ongoing commitment to creating long-term solutions for unemployment and underdevelopment.
By investing in vocational training, Dr. Imudia hopes to empower a new generation with the tools and knowledge to become self-reliant, productive members of society.
The vocational school stands as a testament to his belief in education as a cornerstone of economic empowerment and social transformation.
According to Dr. Martins I. Imudia, “Our expansion into Nigeria is not just about legal services—it’s about unlocking global opportunities for individuals, empowering communities through education, and building a future where Africa plays a leading role on the world stage.
“Our work is a testament to the power of combining expertise with purpose, driving change across borders and inspiring a new generation of globally minded leaders.”
News
Tomato ‘Ebola’ May Disrupt Nigeria’s Agric Value Chain- Rewane

Bismarck Rewane, renowned economist and chief executive officer of the Financial Derivatives Company, has warned that the recent outbreak of the tomato leaf miner, commonly referred to as “Tomato Ebola,” is a disruption to Nigeria’s agriculture value chain.

Bismarck Rewane, CEO, Financial Derivatives Company
Speaking on Channels Television’s Business Morning programme on Thursday, Rewane emphasised that the impact of the outbreak extends far beyond tomatoes, triggering a cost ripple effect across the broader food basket.
“The effect of an increase in the price of tomatoes leads to cost elasticity which means that the price of other substitutes will begin to increase, including the price of carrots, the price of tomato paste, price of tomato puree and other things.
“One for the reddening, two for the effect and the thickening on the sauce you’re making.
“However, because tomato is a perishable commodity, it also means that if there is tomato ebola, then the price has increased, and also the supply has reduced, it has a knock-on effect on so many other things,” Rewane explained.
He added that Nigeria’s lack of food storage and preventive mechanisms has worsened the crisis, causing severe supply chain disruptions.
Rewane’s comments come amid a sharp increase in the price of tomatoes, with a 50-kilogramme basket of the commodity which used to sell for N5,000, now selling for N10,000 to N30,000, thereby compounding food inflation and straining household budget.
The Federal Government said Nigeria has so far lost over N1.3 billion to the outbreak of the invasive pest in key tomato-producing states like Kano, Katsina, and Kaduna.
Abubakar Kyari, minister of Agriculture and Food Security, explained that the outbreak has significantly disrupted tomato supply chains, causing a surge in prices.
He noted that the outbreak of tomato Ebola highlights the fragile nature of Nigeria’s horticultural systems, and that the invasive pest can destroy tomato crops within 48 hours, resulting in catastrophic yield losses.
He added that this crisis highlights the urgent need for integrated pest management strategies, investment in resilient crop varieties, and enhanced support for farmers to safeguard the country’s food supply chains.
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