FG: 68% of Electricity Consumers Illegally Bypassing Prepaid Meters

The Federal Government has revealed that more than 68 per cent of electricity consumers in Nigeria are illegally bypassing their prepaid meters and consuming power without paying, worsening the financial crisis in the power sector.

The disclosure came on Thursday during the fifth annual conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja. Stakeholders at the event called for an electricity tariff system that balances consumer protection with the commercial sustainability of power companies.

The Managing Director of Mainstream Energy Limited and board member of the Nigerian Independent System Operator (NISO), Audu Lamu, represented by NISO’s Chief Executive Officer, Abdu Bello Mohammed, said the country’s harsh economic realities have made it difficult for many Nigerians to afford electricity payments.

He attributed the widespread power theft to rising inflation, unemployment, and declining household income, which have reduced the ability of citizens and businesses to pay utility bills.

> “Millions of Nigerians still lack access to reliable electricity. For many, being connected to the grid does not guarantee supply, and for others, energy costs remain unaffordable. Energy poverty is not just about connection but the inability to afford sufficient power for daily life and productivity,” Lamu explained.



While acknowledging the need for cost-reflective tariffs, Lamu stressed that such adjustments must be implemented carefully to avoid worsening poverty levels. He called for targeted subsidies that would specifically protect low-income consumers instead of blanket subsidies that encourage inefficiency.

> “Properly designed lifeline tariffs and welfare-linked rebates can shield poor households while allowing the electricity market to function effectively,” he added.



NISO’s General Manager, Ali Bukar, raised alarm over the deepening liquidity crisis in the power industry, linking it to meter bypassing and energy theft.

> “Over 68 per cent of consumers are bypassing meters or engaging in other forms of electricity theft. This level of loss is undermining the sector’s financial stability,” Bukar said.



He urged the government and regulators to enforce stricter penalties and deploy advanced monitoring technologies to curb theft and ensure accountability.

Also speaking, Obas Esiedesa, Chairman of PCAN, said more than a decade after the privatisation of the power sector, tariff balancing remains one of the biggest challenges facing the industry.

> “The sector is burdened by an estimated ₦6 trillion debt owed by the Federal Government to generation companies. Liquidity shortfalls persist across the value chain, compounded by gas supply issues, poor transmission infrastructure, and rising foreign exchange costs,” he stated.



Esiedesa noted that while operators insist on cost-reflective tariffs to stay viable, millions of Nigerians still live without electricity or depend on costly diesel and petrol generators for power.

Energy experts at the event agreed that without a comprehensive strategy, combining enforcement, consumer protection, infrastructure investment, and efficient pricing, Nigeria’s power sector may remain trapped in crisis.

They concluded that tackling meter bypassing, improving revenue collection, and addressing inefficiencies across the value chain are critical to achieving stable and affordable electricity supply in the country.