The Federal Government has revealed that more than 68 percent of electricity consumers across Nigeria are illegally bypassing their prepaid meters to consume power without payment.
This was disclosed in Abuja during the fifth annual conference of the Power Correspondents Association of Nigeria (PCAN), where experts in the energy sector expressed concern over the worsening liquidity crisis in the nation’s power industry.
Managing Director of Mainstream Energy Limited and board member of the Nigerian Independent System Operator (NISO), Audu Lamu, said Nigeria’s economic hardship has made it difficult for many consumers to pay for electricity.
Lamu, represented by the Chief Executive Officer of NISO, Abdu Bello Mohammed, stated that inflation, unemployment, and the declining purchasing power of households have eroded citizens’ ability to afford energy costs.
He said, “Millions of households in Nigeria still lack access to reliable electricity. For many, connection to the grid does not guarantee supply, and for others, the cost of energy remains beyond reach”.
While acknowledging the importance of cost-reflective tariffs, Lamu warned that their implementation must not push more Nigerians into energy poverty.
The Managing Director recommended targeted subsidies to support low-income consumers instead of blanket government support that sustains inefficiency.
In his remarks, the General Manager of the Nigerian Independent System Operator (NISO), Ali Bukar, expressed concern that the rampant bypassing of meters and rising cases of energy theft were severely undermining the financial viability of Nigeria’s power sector.
He called on the government to enforce stricter regulations and adopt advanced technologies to detect and curb electricity theft.
Similarly, the Chairman of the Power Correspondents Association of Nigeria (PCAN), Obas Esiedesa, noted that more than ten years after the privatisation of the power sector, tariff imbalance remains one of the industry’s biggest challenges.
He revealed that the sector is weighed down by an estimated ₦6 trillion debt owed to generation companies, alongside issues such as gas supply shortages, inadequate transmission infrastructure, and exchange rate volatility that threaten operational stability.
Energy experts at the forum warned that without comprehensive reforms that integrate enforcement, consumer protection, and cost-reflective pricing, Nigeria’s power sector will continue to face inefficiency and low investor confidence.
