FreeStuffsNG: The GENCOs average electricity generation stands at about 3,000 to 4,5000 MW compared to Nigeria’s installed generating capacity of 10,396 MW.
Limited access to foreign exchange as well as unfavourable exchange rate, are among the major threats to power generation.
According to latest World Bank figures, Nigeria’s average electricity consumption per inhabitant is only 150 kWh per capita, which is one of the lowest in the world.
High and regular system collapses, inadequate manpower to ensure proper maintenance of transmission equipment, and the continuous vandalisation of transmission equipment have contributed to the low electricity consumption per inhabitant.
Also, the DISCOs are said to be in huge debt and are poorly funded.
This, our correspondent gathered, is due to poor revenue collection framework and inefficient supply from the national grid.
Further, the Federal Government and the National Assembly have asserted that the privatisation process has not worked as expected.
The government also agreed to the need for urgent actions in the power sector, which will involve the review of the privatisation process.
The Federal Government has undoubtedly taken vital steps in resuscitating the electricity sector – from privatisation, intervention funds, meter procurement, and investment in new power plants to mention but a few.
However, experts argue that there is still much-needed improvement in the sector.
Energy theft
As electricity tariffs surge in Nigeria, businesses and households are finding increasingly desperate ways to cut costs.
Amidst the financial strain of rising utility bills, a shadowy economy has emerged, where the quest for cheaper power drives individuals and enterprises to bypass the official channels of electricity distribution.
This underground economy, fueled by widespread power theft, involves illegal connections directly from utility poles and tampering with metering systems.
From scaling electricity poles to hacking meters, the practices not only undermine the financial stability of electricity distribution companies but also compromise the reliability of the national power grid.
While there are other challenges confronting the power sector in Nigeria, electricity theft confronting the Discos poses a much greater challenge.
A safety expert and engineer based in Benin City, Edo State, Mr Miracle Morgan, defines energy theft as the criminal act of using electricity without paying for it.
According to him, it includes but is not limited to rigging an electricity line from the power source by bypassing the meter, unlawful direct connection to the distribution source, tampering with the meter for lower readings, billing irregularities by using employees of electricity companies and unpaid bills.
“The challenge of electricity theft therefore, must be put into consideration to the needed improvements in the power sector as it will boost supply in the nation,” he said.
According to research carried out by four researchers – Augustine Osigwe, Chukwuemeka Onyimadu, Chinedu Ikpeazu, and Adaobi Ofordeme – in their work titled, ‘Electricity theft in Nigeria: How effective are the existing laws?’, there is an overwhelming concern that if electricity theft is not controlled urgently, it will contribute immensely to a continued cycle of mounting debts and inefficiencies for not just the DISCOs but also the GENCOs.
They wrote, “There is an estimated average loss of about N21 billion annually in the power sector to energy theft.”
In 2013, for instance, Sustainable Energy for All ranked Nigeria as the 165th out of 195 countries in terms of electricity supply.
Discos have argued that electricity theft is one of the leading causes of the liquidity crisis in Nigeria’s electricity supply market.
It also claimed that a relatively large number of electricity consumers do not pay for electricity used, resulting in significant financial shortfalls.
Nextier Power’s discussions with DisCos reveal that about 10 to 18 per cent of the aggregate revenue losses are attributable to power theft.
Issues on Electricity Theft in Nigeria Electricity theft is a serious problem for the entire value chain of the power sector.
A safety expert and chief electrical officer in an oil and gas servicing firm in Port Harcourt, Rivers State, Terry Promise, stated that theft of electricity increases prices for customers and reduces safety.
Speaking to our correspondent, he said, “Power or electricity theft leads to misallocation of costs among suppliers, which can distort competition and hamper the efficient functioning of the market. operators.”
The researchers – Osigwe, Onyimadu, Ikpeazu and Ofordeme – also added that, when electricity theft occurs, the cost of purchasing electricity from the GENCOs through TCN will be higher than the revenue collected from the sales of electricity to consumers.
This is so because, according to them, electricity theft allows consumers to use electricity without paying for it. Electricity theft leaves the Discos with a huge liability.
“The Discos are unable to pay for electricity transmitted from the Gencos, which makes them reject electricity while remaining indebted to the Gencos.
“In turn, this reduces revenues to the GENCOs while increasing the cost of generating electricity. The GENCOs cannot meet their obligations to gas suppliers, rendering them highly indebted with reduced effectiveness in performing their primary function.
“Electricity theft induces a cycle of indebtedness and ineffectiveness for both the DISCOs and GENCOs.
“The occurrence of electricity theft has become dire. For instance, in 2014, the Ikeja Electricity Distribution Company (now Ikeja Electric) reported that 43,000 prepaid meters out of 134,000 installed by the company had already been tampered with by their owners in five years.
“Similarly, the Port Harcourt Electricity Distribution Company in 2017 reported a loss of about 30 per cent of expected revenue to energy theft. The distribution company noted that energy theft represented a huge revenue leakage to the company.
“Also, the Enugu Electricity Distribution Company reported a loss of about 43 per cent of its expected monthly revenue to energy theft. Further, more recently, the Eko Electricity Distribution Company reported that it was losing over N1.2 billion monthly to energy theft and commercial losses in its network.”
Band-A tariff hike
Earlier in the year, Nigeria witnessed a significant adjustment in its electricity tariff, particularly affecting customers under Band A.
The Nigerian Electricity Regulatory Commission approved an increase, setting the tariff at approximately N225 per kilowatt-hour (kWh) for Band A customers, who are typically households and businesses receiving up to 20 hours of electricity per day.
This decision was part of broader regulatory measures aimed at achieving cost-reflective tariffs in the country.
The increase in tariffs was driven by several factors, including the rising cost of natural gas, a key input in electricity generation.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority raised the base price for natural gas from $2.18 to $2.42 per metric million British thermal unit, reflecting global energy price trends.
This adjustment, alongside other operational costs, necessitated a review of electricity tariffs to ensure the sustainability of the power sector.
For consumers, particularly those in Band A, the tariff hike represents a substantial increase in electricity expenses.
This change comes at a time when Nigeria’s economy is grappling with various challenges, including high inflation rates, fluctuating exchange rates, and general economic instability.
The increased cost of electricity can exacerbate the financial strain on households and businesses, potentially leading to higher operating costs for businesses and increased living expenses for families.
The tariff increase also brings to light the issue of electricity affordability and access.
While the Band A category is often associated with more affluent consumers or businesses, the overall economic environment means that even these groups may feel the financial pinch.
And feeling the pain of this Band A categorisation is the health sector.
The newly implemented tariff hike is crippling essential services in tertiary and private healthcare facilities, leaving them struggling to survive and on the brink of imminent shutdown.
Teaching hospitals and privately-owned healthcare facilities are in a desperate battle to stay afloat in the face of escalating costs, which threatens the very core of patient care.
Recently, hospital administrators decried the huge cost of operations, lamenting that they were struggling to keep essential services running, and that patients were the ones bearing the brunt of the crisis.
Amid this, there is a broader concern that other bands, particularly those with less reliable power supply, might also face tariff hikes in the future, further burdening lower-income households and small scale businesses.
NERC’s addresses concerns
In response to concerns about fairness and service quality, NERC implemented several measures. These include stricter monitoring of service delivery commitments by electricity distribution companies.
Discos are required to maintain a minimum service level for their customers, and failure to do so can lead to penalties or the downgrade of customers to lower tariff bands, which are associated with lower service expectations.
Customers categorised as Band A, now pay over N209 per kilowatt-hour instead of N68/kWh following the removal of electricity subsidies.
Additionally, NERC also mandated the rapid deployment of metering infrastructure to prevent overbilling and ensure transparency. This initiative is crucial as metering has historically been a contentious issue in Nigeria, with many consumers billed on estimated consumption rather than actual usage.
The tariff increase also reflects a broader shift towards market-based pricing in Nigeria’s energy sector. While this approach aims to improve the financial health of the electricity market and attract investment, it poses significant risks for consumers, particularly in a country with a high poverty rate and limited social safety nets.
To mitigate the impact, the Nigerian government and NERC have been exploring various measures, such as subsidies for vulnerable consumers and incentives for energy efficiency.
However, the success of these measures depends on effective implementation and robust regulatory oversight.
An economist and tax expert, Mr Dayo Adedayo, stated that the electricity tariff increase for Band A customers in Nigeria was a significant policy shift aimed at creating a more sustainable energy sector.
However, for him, it also highlights the ongoing challenges of affordability, service delivery, and regulatory compliance in the country’s power market.
He added, “As Nigeria continues to navigate these complex issues, the balance between economic viability for service providers and affordability for consumers will be critical in ensuring a stable and equitable electricity supply.”
Energy theft too much, IKEDC laments
On Saturday, IE lamented the rise in energy theft in the past three months of the Band A tariff increase.
This is even as the DisCo threatened that offenders caught in the act of energy theft would be immediately charged, reiterating that the era of merely imposing loss of revenue penalty alone on offenders was over. The company made this announcement at its July stakeholders forum.
In a statement published on its website, IE’s Head of Corporate Communication, Kingsley Okotie, lamented the increase in energy theft, “especially over the last three months following the implementation of the reviewed tariff on Band A feeders”.
Okotie noted that the company and the entire electricity value chain cannot survive if energy theft goes unchecked.
“The theft is massive and the company cannot guarantee meeting customer expectations if this ugly trend continues.
“Ironically, some perpetrators believe that if they haven’t been caught, there are no consequences. This is false, and we must change the narrative,” he said.
Whistleblowing platform
Speaking on the strategies to curb theft, the company’s spokesman mentioned that a whistle-blowing platform had been created for customers and well-meaning Nigerians to report incidents anonymously.
He added that the platform is managed independently of the business, ensuring customers’ identities remain anonymous and highly confidential.
In 2022, the Executive Director of Research and Advocacy for the Association of Nigerian Electricity Distributors, Chief Sunday Oduntan, highlighted the severe impact of energy theft on service delivery during an interactive session with electricity consumers in Ibadan.
The Eko Electricity Distribution Company, that same year, reported a 21 per cent increase in energy theft cases, with over 21,000 incidents recorded over the past five years, resulting in revenue losses running into billions.
Wola Joseph, EKEDC’s Chief Legal Officer, noted that areas like the Agbara district face an average of 32 energy theft incidents monthly, costing nearly N4m, with total losses exceeding N35m annually.
Similarly, the Jos Electricity Distribution Company, reported significant losses due to energy theft, with CEO Bello Mohammed, indicating that only 59.67 per cent of customers with prepaid meters responded, leaving a 40.33 per cent non-response rate.
This non-compliance, coupled with illegal connections, leads to an estimated loss of N2bn monthly, with 350 cases of bypasses detected each month.
These issues have been noted to continually challenge Nigeria’s electricity sector, hindering revenue generation and service improvement.
Adedayo, further speaking on the matter, stated that Nigerians, knowingly or unknowingly, defraud the electricity supply market through various illegal practices.
He stated that non-payment of electricity bills is a major issue for Discos.
According to him, many consumers fail to pay their bills in full, creating a significant revenue shortfall for the utilities.
He said, “Another prevalent problem is the manipulation of electricity bills, which involves altering the bill amounts through corrupt practices. This typically requires the collusion of utility staff, who may be bribed by customers to adjust their bills fraudulently.
“Meter tampering is also a serious concern. Some customers manipulate their electricity meters to either inaccurately report their consumption or bypass the meter altogether. Reports from Nextier Power indicate that by mid-2019, approximately 50 per cent of meters installed between 2016 and 2018 had been tampered with.”
What the law says
The Nigerian legal system makes provision for the prohibition of electricity theft and also imposes penalties for perpetrators of the offence.
Section 94 (3) of the Electric Power Sector Reform Act (2005) provides that ‘Notwithstanding anything contained in any other law, any person who willfully destroys, injures or removes equipment or apparatus of a licensee commits an offence and is liable on conviction to imprisonment for not less than five years and not more than seven years.’
The Miscellaneous Offences Act also consists of provisions dealing with tampering with electrical equipment.
Section 1(9) of the MOA provides that “any person who unlawfully disconnects, removes, damages, tampers, meddles with or in any way whatsoever interferes with any plant, works, cables, wire or assembly of wires designed or used for transforming or converting electricity shall be guilty of an offence and liable on conviction to be sentenced to imprisonment for life”.
Section 1(10) of the MOA additionally provides that “any person who unlawfully disconnects, removes, damages, tampers, meddles with or in any way whatsoever interferes with any electric fittings, meters or other appliances used for generating, transforming, converting, conveyancing, supplying or selling electricity shall be guilty of an offence and liable on conviction to imprisonment for a term not exceeding 21 years”.
Additionally, under section 96 (2) of the EPSRA (2005) which confers power to make regulations on NERC, the regulator has made several regulations, of particular importance is the regulation to deter the theft of electricity, theft and destruction of electricity supply infrastructure, and penalties for such theft.
The NERC Theft and Other Related Regulations (2014) stipulates in Regulation 1 that “anyone who willfully and unlawfully connects to overhead, underground, or underwater lines, cables, service wires, or facilities of a licensee; or tampers with a meter, uses a tampered meter, install a current reversing transformer, use shorting wires, loop connections, or any device that interferes with accurate metering, or bypass a meter to receive electricity without proper registration” has committed an offence.
It also stated, “Anyone who damages or destroys an electric meter, equipment, wire, or conduit, causing interference with accurate metering or consumption of electricity without authorization will be guilty of an offence under Sections 383 and 400 of the Criminal Code, Section 286 (2) of the Penal Code, and Section 1 of this Regulation”.
Penalties include imprisonment as specified in Section 390 of the Criminal Code, Section 287 of the Penal Code and Section 94 of the EPSR Act.
Smart metering
To curb electricity theft in Nigeria, especially during periods of increased tariffs, Morgan stated that the Discos must deploy advanced metering infrastructure.
He said, “Invest in smart meters with real-time monitoring capabilities to detect tampering or unauthorised usage immediately.
“Use data analytics to identify unusual consumption patterns and schedule regular physical inspections of meters and connections to catch tampering early.”
Stricter enforcement
A lawyer, Mrs. Sodienye Jumbo, also suggested strict enforcement of regulations and collaboration with law enforcement.
She said, “Increase enforcement of the NERC Theft and Other Related Regulations, with regular audits and stricter penalties for offenders.
“Work closely with law enforcement agencies to ensure swift prosecution of theft-related crimes and to deter potential offenders.”
Jumbo also advised Discos to run awareness campaigns to educate consumers about the legal consequences of electricity theft and the importance of paying bills.
geoworldedu: So if someone refuse to believe in your smello Jesus and his God, the person is automatically sinning and fornicating. Just dey play
he go do you like magic soon, when you start to dey roast like fried chicken for hell. The first thing you go remember be say person tell you make you give your life to Christ Jesus and you refuse come even call am smello Jesus!
This I have preach. The rest is up to you to carry your two leg enter hell or salvation
psalmylee: Mine was that she was always on her phone Even when we were together.. That pissed me off alot and I eventually started loosing interest till I called it quit. Share yours .
president tinubu should rename naija women as hyenas!
That black species in that west Africa regions only know how to bill and use their yansh as ransom for billing
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Price - ₦224,400
uniso chipset and LCD display for 224k Which bastard go buy this phone?
DuBLINGreenb: You have been remembered since yesterday
please do not give these nairaland people money na scammers majority of them be! If not 98% of them asking for money. As far them get data to browse just forget them
DuBLINGreenb: I am not in India she wanted me to go with her but I can’t leave Canada for India when there are many Indians running away from India to Canada and their population is too high and they don’t have jobs for their people let alone foreigners. But no one is beheading me. Relax.
yeah! That's how my Indian babe break up with me!
Always with this long text or written message
Dust yourself for part 2 with whatapp long text message
alphaNomega: her family will do everything they can to discourage your relationship. Her father is more concerned about adding 10 years to his life than ensuring his daughter lives a happy life.
What type of father falls sick when he hears his daughter has found someone she loves? Ask your gf this question. If she can not answer, let her ask her father.
You said her family are educated and enlightened. what type of education did they get? Did they do it for bragging rights without actually learning anything from the process?
oga why you dey ask mumu question like this na Even police were no get sense no go ask this kind of stupid question during interrogation
Na yansh you dey use take view with your phone?
So make he go dey ask the girl which kind sickness her father dey sick?
DuBLINGreenb: Exactly abeg tell them oh Naija women own worse pass, most of them are merely looking for maga, for person to milk dry. I have been close to some of them in the past heard how they talk and what they talk about Money money money all day long, attachment, bags, outing nothing more nothing less.
no mind that guy oh! Indian women way and by far better than naija women if not that you had had luck with your babe because of family issues I can 💯 guarantee you that your babe can't be compare to 1000000 naija women in terms of character, beauty and love.
Just that your luck is just 50 50 because of family issues
I am very sure what you just said is one of the main reasons guy man no won leave the babe. Life is meant to be enjoyed and not endured. He should move ahead. Indians are just too toxic and racist. Except guy man wants to have mental breakdown.
my experience with those Indian people is not that funny ohh. There's no Magic you can do if the family no agree. The best is just to leave those toxic and racist India family alone and have a rest of mind.
Kizzygentle: I don't support this in every form. This man should be stripped from been a pastor abeg. I'm a guy and this is the worst thing I have heard his year. Women may want equality with men which is wrong but u saying women are owned by theor husband and should not be friends with the husband is totally unacceptable. Please drop the mic and never climb a pulpit again..
alphaNomega: wrongest advice. na una dey perpetuate this racism nonsense. men wey see tree from far my foot!
bro. this is not time to mourn 3rd July 2024 is different from every other day you have experienced. Ask yourself this question, if she lost all her parents in a plane crash, how would it affect your relationship?
No reason all this racist, caste wahala wey still keep us backward for this life. You love your babe, she love you, and that is the best. what two of you should be planning now is how to sustain your family when you get married. even if you find your dream abonema wife, una go still get problem somehow.
oga he be like say you never date woman outside your local government area that's why you dey yarn this!
If you don travel abroad before you go know say racism real! We dey talk sick parent you dey talk plane crash weti you dey even talk self?
Even here for naija if the said lady's parents no gree for the relationship, it is advisable to leave the relationship to avoid problems and families issues (maybe because you no get parent that's you dey yarn like this)
Indian were I don stay for years! If her parents no gree it's very very difficult for the relationship to stand except in the case the girl use strong head danm the whole things, and those girls are located in Bangalore region were racist are not that much.
DuBLINGreenb: Thanks for your advice it means more than you can imagine, it’s not easy to find people to talk to everybody has their own problems so I appreciate, if she calls it quits I’ll just let it be.
We were doomed to end from the start, they already promised not only to disown her but also cut her off the will and infact they just told her that if she continues with the relationship she will have to pay them all the money they spent on her to bring her to Canada and all that and the money is over $40,000 she came as a student and has been here for 4 years since. But if she ends the relationship they will cancel/forgive the “debt”. The pressure is just too much.
nobody not even 1 supported us only my family were indifferent about it and we had one mutual friend who eventually after much convincing the girl said ok I’ll let you guys be. Our story long.
So basically when we started dating everyone at where we worked and friends where all like “what the heck?” Nobody even said congratulations. One girl let’s call her X promised to give me another girl if it’s an Indian you want don’t worry I’ll arrange for you, I was shocked, she tried to put me up with another younger shorter Indian girl than the girl I was with I said no I’m not interested. X is from East Africa so she said she’ll hook me up with her friends, all these things only made me want The girl I’m with even more. They also tried the same thing with her X tried to match my girl with a black guy from Zambia and some guy from Bangladesh.
X is African and Christian, I am African and Christian And she was trying seriously to put my girl together with a Muslim east Asian guy from Bangladesh I was like wtf? She went ahead to say and do all she can to break us up it didn’t work so at the end of the day many months later when we started living together and it was clear she couldn’t stop us, she called both of us and admitted all that she’s been doing and said we should forgive her and made us promise to continue to be together but we told her about the challenges ahead at that point her parents hadn’t been informed about us but we suspected it wasn’t going to be easy but we greatly underestimated how difficult it was going to be for many reasons 1. Both Her parents are educated 2. They lived in the city 3. Her extended family don’t live with them or close to them 3. They let their 2 older daughters get into love marriages (but with fellow Indians)
However we didn’t focus on the fact that 1. Her parents were arranged married (her mom was 12 or 14 her dad was 18 or 21
2. The place she is from still has under age arranged marriage going on and it is very commonly practiced even more than other parts of India.
3. Since both elder sisters love marriages failed and ended in divorce they weren’t going to let her the last daughter get into a love marriage more so with a non Indian who is black and non Hindu.
4. They lived in the city and were educated and let their daughters travel and get into love marriages which were good things but their extended families saw all these as minus as negatives and were already talking bad about them for these.
Currently they are promising her heaven and earth.
take advise from men were don see tree from farrrr ahead!
Her not too pink toto too sweet to the extent you no won let her go! You go regrett ohh. Free that babe to go meet her family and prepare your heart from long text message breakups.
Dust yourself and move on! As far as you be black guy plenty girls especially Asian girls are in line craving for ya.
DuBLINGreenb: I’ve only been with her for a year and some months, her uncles and aunts don’t like her parents because they chose to go to school and sent their daughters abroad and they feel they think they are better than them because in fact they have more money than them and their children are more well off.
Her cousins are already all married off, some were arranged married at the age of 14 and 16 so for them to leave their daughters unmarried till 24 and 26+ is already a big deal not to talk of sending them abroad unsupervised. So her parents are already looked down upon for being bougie and upper middle class.
Her dad’s health has also deteriorated and they were saying it’s because of our relationship that’s given him serious thinking and all that so he isn’t responding well to treatment and what not.
For her to be with me till this time with all that has happened and all that’s been said for an Indian is quite a big deal to us it may mean little and to white people it may mean nothing at all. But to them like I have said before they have this herd mentality they LOVE to fit in. Standing out is taboo. So do what what everyone else is doing is the order of the day.
oga ! Free that girl make she go India go solve her problem or otherwise you go regret your actions
If you love someone so much free that person and if that person return back to you! The love will be even stronger Note: this method is not applicable to Naija women
So what I'm saying is that you should persuade that girl to go see her parents so that you will get rest of mind and let her be the one to break up with you due to her parent choice. No go do telemundo dey shout love love like native fowl 🪿 free her make she go abeg. Her pale come die now them go dey blame you for the rest of your life.
Speaking from experience I have almost identical case with one India lady like that parent no gree ohh. She cry tired carry her two leg go break up with me! Shall I happy small come married one useless India man! He no reach 3month this girl dey beg me say she make the biggest mistake in her life and wanted to come meet me ( like runaway) me I tell her say I no dey do that kind package ohh! Make you stay with your husband since na you make that your choice to break up with me.
That woman stalk my life no be small. With long long message and suicide message. I kukuma block her and now I'm with someone far much beautiful.
As a man you have a lot of options! Na women no dey get options as them be like flowers ohh. So guy no carry this stuff for mind. Just persuade her make she go see her family and dey watch how things play out. No do like those useless simps
Phones › Re: Massive Crowd At MTN Office Ikotun by Entanglement: 10:20am On Jul 29, 2024
