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Electricity Theft in Nigeria: Impact, Strategies and the Way Forward
By Okoko Chidozie Christian
[email protected]; 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.
The World Bank Group has announced the 31-month debarments of United Aviation Services Limited (UNASEL), a transportation services company based in Nigeria, and Air Vice Marshal Alkali Mamu, its owner and president, “in connection with fraudulent practices under the Enhancing Niger Northeastern Connectivity Project,” according to a press release issued by the multilateral development bank.
The statement said that the project aims to enhance connectivity and road safety along the Zinder-Agadez Road section and improve access to basic socioeconomic infrastructure for selected communities in that road section.
However, according to the statement: “UNASEL and Mr. Mamu presented false experience documents in a prequalification application to qualify for a contract under the project. This was a fraudulent practice under the World Bank’s sanctions framework.”
“The debarments make UNASEL and Mr. Mamu ineligible to participate in projects and operations financed by Bank Group institutions. The debarments are part of two settlement agreements under which UNASEL and Mr. Mamu admit culpability for the underlying sanctionable practices,” it added.
The statement further said: “Per the Bank Group Sanctioning Guidelines, the settlement agreements provide for a reduced period of debarment in light of UNASEL and Mr. Mamu’s cooperation.
As a condition for release from sanction under the terms of the settlement agreements, UNASEL and Mr. Mamu commit to developing and implementing integrity compliance measures that reflect the relevant principles set out in the Bank Group Integrity Compliance Guidelines, and Mr. Mamu further agrees to complete corporate ethics training.
UNASEL and Mr. Mamu also commit to continue to fully cooperate with the Bank Group’s Integrity Vice Presidency.
“The debarments of UNA SEL and Mr. Mamu qualify for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.”
Governor Peter Mbah of Enugu State, has approved the allocation of a parcel of land in Enugu, the state capital, for the establishment of a state-of-the-art Digital Fabrication Centre by the Industrial Training Fund.
Mbah announced this while receiving a delegation from the Industrial Training Fund on a courtesy visit to the Government House, Enugu.
The ITF disclosed this on Friday in a statement signed by its Director of Press and Public Relations, Thomas Ngor.
According to the statement, Mbah described the proposed project as timely and aligned with his administration’s vision of transforming Enugu into a leading destination for investment, innovation and technology-driven industrial development.
He noted that the future of economic prosperity lies in deliberate investments in human capital and emerging technologies, adding that the state has continued to create an enabling environment for innovation, enterprise and sustainable growth.
The governor explained that his administration has made technical education compulsory in the state’s basic education system, with emphasis on digital literacy, robotics and mechatronics to prepare learners for the future of work.
According to him, many traditional trades are now driven by digital technologies, making it imperative to equip young people with relevant technical competencies that will enable them to compete globally and contribute meaningfully to economic development.
Governor Mbah further disclosed that his administration has built smart schools across the state, equipped with robotics centres, mechatronics laboratories and other modern learning facilities, to prepare youths for the evolving global economy.
He noted that artificial intelligence is expected to contribute about $20tn to the global economy in the coming years.
He therefore stressed that the state must be intentional about upskilling its citizens, adding that the establishment of the ITF Digital Fabrication Centre will significantly strengthen the state’s drive to build a knowledge-based economy, foster innovation, promote local manufacturing and create employment opportunities for its growing youthful population.
Earlier, Afiz Ogun, the Director-General of the ITF, who led the delegation, said that upon his appointment by President Bola Tinubu, he was mandated to upskill Nigerian artisans to international standards.
He explained that the Fund subsequently repositioned its technical and vocational skills development efforts through strategic initiatives, including the Skill-Up Artisans Programme, which is designed to train, certify and license Nigerian artisans to international standards.
Ogun disclosed that the Fund had already established a Digital Fabrication Centre in Ikeja, Lagos, with the capacity to produce more than 400 different products. He therefore requested the allocation of land in Enugu State to establish a similar centre with the same production capacity.
According to him, the initiative is aimed at promoting industrialisation, reducing dependence on imports and preparing Nigerians for opportunities in the Fourth Industrial Revolution.
He also reaffirmed the Fund’s readiness to enter into public-private partnerships that will transform Nigeria’s artisanal ecosystem.
Ogun further noted that digital technologies, including artificial intelligence, robotics and computer-aided manufacturing, are rapidly transforming the global economy, making it imperative for Nigeria to deliberately invest in upskilling its workforce to remain globally competitive.
The ITF delegation was later conducted on a guided tour of facilities at one of the smart schools established by the Enugu State Government.
Glovo, a multi-category tech company, has announced its integration into the generative AI ecosystem with the launch of its “Shopping Assistant” for ChatGPT and Claude. Users can now discover retail products, compare prices, and seamlessly order any item using natural conversational language with the AI systems.
The Glovo experience inside such platforms introduces a conversational commerce model that shifts from a search-based web to an intent-based web. Rather than navigating traditional app menus and filters, users can express needs, such as asking for a “last-minute gift for a coffee lover under ₦50,000”, and the assistant handles semantic search, location validation, and product curation.
A Seamless, Concierge-Like Experience
Once both platforms have been connected through either ChatGPT or Claude apps, the user will be able to have a multi-turn dialogue where the assistant remembers context and constraints, such as budget caps. Users receive a visual carousel of up to five highly customised product options available at local stores. Each product displays its image, name, store details and ratings, and price. While the search and discovery experience takes place directly on the Generative AI platforms, selecting a product via the “view on Glovo” button takes the user to the Glovo mobile or web app, where the payment and final purchase are exclusively completed.
Strategic Focus on Retail and Growth
Glovo is prioritising the retail and grocery sectors for this initial launch, capturing the established habit of using AI for product research. Generative AI has driven a significant jump in retail traffic globally, so this first-mover advantage aims to meet customers where they are meeting Gen AI daily, and ensure it captures high-intent organic traffic as search behaviours evolve.
“We’re always looking for ways to meet our customers where they already are. Being available on Claude and ChatGPT means people can discover what Glovo has to offer as part of a natural conversation, with no friction. Glovo has always been about being the everyday app that provides choice and convenience, and this is another step in that direction”, said Shiro Theuri, Chief Technology Officer at Glovo.
How to look for products in the Glovo app through ChatGPT or Claude
- The user must sync ChatGPT or Claude with the Glovo app with the plug-in.
- Once synced, the user must type in @glovo followed by their request.
- The AI platform displays a carousel with 5 available options for the user.
- If the user wants to purchase any of the products or continue searching within the Glovo app, they must click “View on Glovo”, which will redirect the user to the Glovo app or website.
- After the order is confirmed, the store will prepare the item(s) and the courier will head up to the pick-up location. The user will receive the order in minutes.
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