The House Committee on Privatisation and Commercialisation of the National Assembly has reaffirmed its commitment to creating stronger laws to tackle the increasing problem of energy theft within Nigeria's power sector.
Oversight Visit and Firm Commitments
This pledge was made during the committee's oversight visit to the Ibadan Electricity Distribution Company Plc (IBEDC) on Wednesday. The Chairman of the Committee, Hon. Engr. Hamisu Ibrahim, revealed that the National Assembly is actively working on a bill designed to combat energy theft through stricter penalties, better enforcement, and improved security for electricity infrastructure.
"Energy theft has become a major obstacle to efficient electricity distribution in Nigeria," the chairman stated during an interactive session with IBEDC's management. "We are working on a robust legal framework that will decisively address this menace and safeguard infrastructure investments."
Tackling Liquidity and Outstanding Debts
Hon. Ibrahim further promised the committee's full support in assisting electricity distribution companies (DisCos) to recover massive outstanding debts owed by various federal and state ministries, departments, agencies, and local governments. He emphasized the committee's readiness to collaborate with DisCos to ensure these debts are settled, which would significantly improve liquidity across the power sector.
"I want to assure the DisCos that this committee is going to stand firm to ensure these debts are recovered," Ibrahim added.
This assurance came directly after an appeal from Engr. Francis Agoha, the Managing Director and Chief Executive Officer of IBEDC. Engr. Agoha had called for the National Assembly's intervention concerning the dual challenges of energy theft and unpaid bills by government institutions. He stressed that these issues have severely constrained market liquidity, affecting IBEDC's ability to expand its services and strengthen its distribution network.
IBEDC's Progress and Persistent Challenges
Engr. Agoha briefed the committee on the company's investments and infrastructure improvements since the sector's privatisation in 2013. He highlighted the progress made in areas such as network expansion, metering, safety, and customer service delivery, while also outlining strategic plans for future growth.
"We have significantly expanded and rehabilitated our distribution network, but the challenges of energy theft, vandalism, and outstanding government debts continue to undermine our service delivery," he explained. "We appreciate the National Assembly's willingness to intervene."
The committee also took a tour to inspect critical distribution infrastructure owned by IBEDC. This visit was part of the legislature's mandate to assess the performance of the power sector, identify operational challenges, and check compliance with regulatory standards since privatisation.
Other committee members present at the visit included Hon. Ganiyu Ayuba (Alimosho Federal Constituency, Lagos), Hon. Donatus Mathew (Kaura Federal Constituency, Kaduna), Hon. Omirin Olusanya (Atakunmosa/Ilesa, Osun), and representatives from the Bureau of Public Enterprises (BPE).
