AN ESSAY ON

“ELECTRICITY THEFT AND ITS IMPLICATION FOR THE

NIGERIAN ELECTRICITY SUPPLY INDUSTRY (NESI)”

Name: ABBA PRINCE EMMANUEL

Home Address: HOUSE 63, ZONE ‘D’, JIKWOYI PHASE II,
F. C. T - ABUJA
School Address: GOVERNMENT DAY SECONDARY
SCHOOL KARU F.C.T– ABUJA.
Email: mikemeriewen@gmail.com
Phone Number: 08037866080
08174965992(WhatsApp)

ELECTRICITY THIEFT AND ITS IMPLICATION FOR THE NIGERIAN

ELECTRICITY SUPPLY INDUSTRY

Electricity theft can be defined as the illegal use of electricity service with the intention to
avoid billing charge. It can be also said to be the use of power without a contract with the
supplier with total or partial bypassing metering system. It is a crime and is punishable by
fines and/or imprisoned as it is when a person deliberately consumes electricity without
lawfully paying for it. This can range from bypassing the electricity meter, stealing electricity
directly from our network or knowingly using electricity without being registered to an
electricity supplies.

The deliberate stealing of electricity is widespread and happens through various schemes,
including direct connection to the overhead low tension distribution cables, bypassing the
meter so that only a small load is connected to it while the rest are connected directly to the
supply behind the meter or tampering with the meter to make its reading inaccurate.

Electricity theft is one of the several challenges facing power distribution companies in
Nigeria. It is a problem for the electricity supply industry with huge consequences in loss of
revenue and danger to life and property. In developed countries, it appears to be more
controlled which is evident in low levels of non-technical losses.
Firstly, electricity theft leads to commercial losses that adversely affect the operations of
power distribution companies in Nigeria. This trend is one of the major causes of revenue
losses which increase the debt profile in the Nigerian Electricity Supply Industry (NESI)
negatively impacting the nation’s economy. Report has revealed that distribution companies
lose over N174 billion yearly to meter bypass, illegal connections, and electricity theft.

Also, electricity theft depreciates the financial sustainability of the power sector and hinders
new investment in the sector. It affects the ability of distribution companies to meet up with
their financial obligations, service quality improvements, and network expansion plans. 

Furthermore, electricity theft causes power surges and electrical failure. This damages
transmission equipment and infrastructure which we call the grid and it can also lead to the
premature failure of expensive electrical transformers and system collapse and this is does no
good for the Nigerian Electricity Supply Industry.
In addition, electricity theft to a large extent can lead to operational challenge for the
Nigerian Electricity Supply Industry. This therefore means that there will be irregular,
instability and insufficient supply. Metering challenges such as huge metering gapping,
estimated billing and poor meter maintenance is also expected to occur which will generate
negative reaction from the customers to the Industry.
To conclude, I will say electricity theft is a major menace to the Nigerian Electricity Supply
Industry and the government at large of which if not well handled and tackled too, will
greatly affect other sector of the government and development too as power is seen a bedrock
for development. I strongly believe we all can put a stop to this disease and embrace whole
power stability.