Warns Of ‘Bleeding Sector
A Power Systems engineer and researcher from the United Kingdom, Pelumi Peter Aluko-Olokun, has advocated for the adoption of advanced grid technologies to enhance energy reliability and accelerate the transition to net zero.
Aluko-Olokun research focuses on power system resilience, renewable energy integration, and the application of AI-driven solutions for grid stability and predictive maintenance. He revealed the level of electricity theft in Nigeria and how it continues to affect the nation’s drive for power sufficiency.
Aluko-Olokun, who explored the nationwide challenge of electricity theft in Nigeria and its impact on the nation’s energy sector, noted that every evening, as darkness envelops communities across the country, countless households turn to generators. He said: “The standard explanation of the people is there is no light, but behind that simple complaint lies a more complex reality: much of Nigeria’s electricity never reaches the people it is meant for. It disappears along the way, stolen, wasted, or lost.”
Drawing on the available data from the Nigerian Electricity Regulatory Commission (NERC), Aluko-Olokun noted that Nigeria loses over 40 per cent of the electricity generated every year before it reaches paying customers. “Some of these losses are technical from old transmission lines, overloaded transformers, and poor infrastructure, while a significant portion is non-technical loss, more plainly called electricity theft, illegal connections, bypassed meters, and unpaid bills. All these bleed the power sector of billions of naira annually, he explained.”
According to Aluko-Olokun, this undermines the ability of Distribution Companies (DisCos) to recover costs or invest in infrastructure upgrades. For honest consumers, the consequence is higher tariffs, erratic supply, and deepening frustration.
The researcher documents how power theft often occurs openly in many communities. He explained: “Residents connect wires directly to distribution lines without authorisation, sometimes with the tacit approval of corrupt officials. Prepaid meters are bypassed or tampered with. Entire neighbourhoods operate on “free light,” while others foot the bill.” His research highlights that even some businesses and government institutions have been implicated in these sharp practices. Beyond losing revenue, he emphasised other risk: spark fires, destruction of transformers, and electrocution. Yet for many Nigerians, power theft is seen less as a crime and more as survival in a country where electricity is unreliable and bills are unpredictable.
Aluko-Olokun’s findings revealed that, at first glance, power theft looks like a way for individuals to avoid paying, but in reality, every Nigerian pays. “The losses are spread across the system,” he stressed, “DisCos pass unrecovered costs to paying customers in the form of higher tariffs. The federal government covers part of the deficit with subsidies, draining public funds that could have gone to schools, hospitals, or roads. For businesses, unreliable supply caused by transformer failures and load shedding leads to higher generator use. This raises the cost of production, making goods more expensive for consumers. In effect, the hidden cost of power theft shows up in everything from bread to cement.”
According to Aluko-Olokun,“curbing power theft will require more than punishment. Nigerians must see value in paying for electricity. That means metering every household, ensuring transparent billing, and delivering a reliable supply. Where people know they are billed fairly for what they consume, compliance rises. Where service is poor, theft thrives. He also stressed the importance of community involvement, urging local leaders, traditional rulers, and civil society to help reframe electricity theft as not just a personal gain but a collective loss. More vigorous enforcement, backed by technology such as smart meters and remote monitoring, can further reduce losses.”
Aluko stated: “Nigeria’s electricity crisis is often blamed on insufficient generation, but even the little generated is squandered before it reaches those who need it. Until the hidden cost of power theft is addressed, more megawatts will not automatically translate into brighter homes or thriving industries.The truth is stark: every stolen kilowatt keeps Nigeria in the dark. The choice before Nigerians is whether to keep paying the price in silence or to demand a power system built on fairness, accountability, and shared responsibility.”
