Oil & Energy
68% Of Electricity Consumers Bypassing Prepaid Meters — NISO
The Nigerian Independent System Operator (NISO) has said that over 68 per cent of electricity consumers in Nigeria are illegally bypassing their prepaid meters and consuming power without payment.
Lamu noted that Nigeria’s harsh economic environment made it increasingly difficult for many consumers to pay for electricity.
Represented by the Managing Director and Chief Executive Officer of NISO, Abdu Bello Mohammed, Lamu said rising inflation, unemployment, and declining purchasing power, eroded the capacity of households and businesses to meet even basic utility costs.
“Millions of households in Nigeria still lack access to reliable electricity. For many, connection to the grid does not guarantee supply, and for others, the cost of energy remains beyond reach. Energy poverty is not just about a lack of connection but the inability to afford sufficient power for daily life and productive enterprise,” Lamu said.
According to him, while the need for cost-reflective tariffs is unavoidable, the challenge lies in implementing them in a way that does not worsen poverty or exclude the vulnerable.
Lamu proposed a targeted approach to subsidies that ensures only low-income consumers benefit, arguing that blanket subsidies have only sustained inefficiency in the system.
“Properly designed lifeline tariffs and data-driven, welfare-linked rebates can provide real protection for low-income consumers while allowing the market to function efficiently,” Lamu stated.
He pointed out that the tariff question is about finding equilibrium between commercial sustainability and social fairness — between ensuring that our operators remain viable and ensuring that no Nigerian is pushed further into energy poverty.
Lamu equally identified inefficiency within the power value chain as a major driver of high tariffs, stressing the need to reduce technical, commercial, and collection losses across distribution companies (DisCos).
Also speaking, NISO’s General Manager, Ali Bukar, lamented the deepening liquidity crisis in the electricity market, disclosing that over 68 per cent of consumers are bypassing meters or engaging in other forms of power theft.
Bukar who noted that this level of meter bypassing is undermining the financial stability of the sector, called for stricter enforcement and the deployment of technology to curb theft and leakages within the system.
On his part, the Chairman of the Power Correspondents Association of Nigeria (PCAN), Obas Esiedesa, said more than a decade after the privatisation of the power sector, tariff balancing remains a formidable challenge.
“The industry is still weighed down by an estimated N6 trillion debt owed by the federal government to power generation companies. A massive liquidity gap persists across the value chain, worsened by gas supply shortages, weak transmission infrastructure, and rising foreign exchange costs that threaten investments and operations.”
He said while operators are demanding cost-reflective tariffs as a condition for viability, millions of Nigerians continue to live in darkness or rely on expensive self-generation through diesel and petrol-powered generators.
Energy analysts at the event noted that Nigeria’s power sector continues to operate far below its installed generation capacity due to weak infrastructure, poor liquidity, and energy theft.
They argued that without a holistic approach combining enforcement, consumer protection, and efficient pricing the electricity market may remain in perpetual crisis.
Oil & Energy
NCDMB Unveils $100m Equity Investment Scheme, Says Nigerian Content Hits 61% In 2025 ………As Board Plans Technology Challenge, Research and Development Fair In 2026
In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.
The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.
According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.
Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.
The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.
In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.
“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.
