The Federal Government has revealed that over 68 percent of electricity consumers are bypassing prepaid meters and consuming power without payment, according to the Nigerian Independent System Operator (NISO).
The disclosure came during the annual conference of the Power Correspondents Association of Nigeria (PCAN) in Abuja. The report also mentioned that rising inflation, unemployment and decreased purchasing power have lowered consumers’ ability to pay for electricity.
The Managing Director of Mainstream Energy Limited and board member of NISO, Audu Lamu, noted that “energy poverty is not just about a lack of connection but the inability to afford sufficient power.” He emphasised that without investment in affordability and infrastructure the power sector’s revenue challenges will continue.
Meanwhile, the NISO General Manager, Ali Bukar, called for stricter enforcement and modern technology to address meter bypassing and other commercial losses. He described the situation as a threat to both power-sector liquidity and investor confidence.
The accounting of widespread meter bypassing adds pressure to the Nigerian Electricity Regulatory Commission and distribution companies (DisCos), which are already managing high infrastructure costs and low revenue collection. The combination of weak revenue and technical losses is limiting the industry’s ability to expand and attract capital.
For Nigerian utilities and investors, the development highlights two priorities: reducing consumer non-payment and ensuring tariffs reflect actual consumption. The sector’s stability will depend on how quickly policymakers and operators can close these gaps.
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