The Federal Government has vowed to take action against companies in Lagos State allegedly stealing up to 150 megawatts of electricity daily by connecting their factories directly to the national grid without authorisation from distribution companies. Minister of Power Joseph Tegbe said the government would pursue the unnamed firms and recover unpaid electricity charges as part of efforts to reduce technical losses and improve power supply.
Minister Reveals Scale of Energy Theft in Lagos
Speaking at an energy forum in Lagos, Tegbe said the illegal connections were discovered while the government was working to address electricity challenges along the Lagos corridor. He described the practice as large-scale energy theft involving industrial facilities rather than individual households.
“We’re going after those companies. We’ll collect back charges from them, and we’ll make sure that the technical loss factor in the grid is reduced,” the minister said. The government is also reviewing its investment strategy to ensure that available funds address the most pressing challenges in the electricity industry.
Government Reviews Investment Strategy and Infrastructure
Tegbe said tackling unauthorised connections was part of broader efforts to improve the efficiency and reliability of Nigeria’s electricity network. He also disclosed that development finance institutions had committed approximately $18 billion to the power sector. However, he criticised how previous investments had been allocated, arguing that some projects were driven by political considerations rather than sector priorities.
“We’ve not been prioritising what we’re doing. We’ve been implementing projects based on political patronage. Now we’re taking a second look at it,” he said. The government has also commenced a nationwide technical audit of electricity infrastructure to identify faults and ensure that interventions target specific problems across the sector.
Ageing Infrastructure and Plans for New Control Centre
The minister identified ageing transmission infrastructure as one of the factors contributing to persistent electricity challenges, noting that some facilities had been in operation for approximately 50 years. He also disclosed plans to build a new National Control Centre to replace the existing facility in Osogbo, which he said was constructed in 1962.
According to Tegbe, the government is working to isolate Lagos and Abuja from disruptions originating elsewhere on the national grid. The approach is intended to improve stability and prevent disturbances in one location from affecting electricity supply in other areas.
New Companies to Consolidate Infrastructure Assets
The minister said the government was also developing two companies, the Grid Asset Management Company and the Renewable Asset Management Company, to consolidate infrastructure assets and mobilise financing. The proposed companies are expected to use their balance sheets to raise funds for investments in the sector.
The measures form part of the government's broader efforts to address infrastructure weaknesses, reduce electricity losses and improve power supply across the country.
