The Federal Government has vowed to take action against companies in Lagos State allegedly drawing up to 150 megawatts of electricity daily from the national grid through unauthorised connections, warning that the firms could be made to pay outstanding electricity charges.
Minister of Power Joseph Tegbe disclosed this at an energy forum in Lagos, where he said the government uncovered the alleged practice while working to address electricity challenges along the Lagos corridor.
According to the minister, the unauthorised connections involve industrial facilities that bypass electricity distribution companies, resulting in significant losses to the power sector.
“We’re going after those companies. We’ll collect back charges from them, and we’ll make sure that the technical loss factor in the grid is reduced,” Tegbe said.
The government did not name the companies allegedly involved or provide further details about how the estimated 150 megawatts was calculated.
Tegbe said tackling illegal power connections was part of wider efforts to improve the efficiency and reliability of Nigeria’s electricity network.
He also disclosed that development finance institutions had committed approximately $18bn to the power sector, but criticised the allocation of previous investments.
According to him, some projects were driven by political considerations rather than the sector’s most urgent needs.
“We’ve not been prioritising what we’re doing. We’ve been implementing projects based on political patronage. Now we’re taking a second look at it,” he said.
The minister said the government was reviewing its investment strategy to ensure available funds were directed towards addressing critical infrastructure gaps and improving electricity delivery.
He added that a nationwide technical audit of electricity infrastructure had commenced to identify faults and guide interventions across the sector.
The minister identified ageing transmission infrastructure as one of the factors contributing to Nigeria’s persistent electricity challenges, noting that some facilities had been in operation for about 50 years.
He also disclosed plans to construct a new National Control Centre to replace the existing facility in Osogbo, which he said was built in 1962.
According to Tegbe, the government is working to isolate Lagos and Abuja from disruptions originating elsewhere on the national grid.
The proposed approach is intended to improve grid stability and limit the impact of disturbances in one location on electricity supply in other areas.
Tegbe further disclosed plans to develop two companies: the Grid Asset Management Company and the Renewable Asset Management Company.
The proposed entities are expected to consolidate infrastructure assets and help mobilise financing for investments in the electricity sector.
The government hopes to use their balance sheets to raise funds for projects aimed at strengthening the grid and expanding infrastructure capacity.
The measures form part of broader efforts to reduce electricity losses, address longstanding infrastructure weaknesses and improve power supply across Nigeria.
However, details of the proposed companies, including their operational structure and implementation timelines, were not provided in the report.
