N120bn Lost Yearly to Energy Theft in Ikorodu-Sagamu Corridor - FG

N120bn Lost Yearly to Energy Theft in Ikorodu-Sagamu Corridor - FG

.orders investigations

By Our Reporter

The Federal Government has said that Nigeria loses about N120 billion a year to energy theft in the Ikorodu–Sagamu corridor, disclosing that the government is planning stricter enforcement and sector reforms to tackle illegal connections and revenue losses.

Minister of Power, Joseph Tegbe, made this known while speaking during a high-level engagement with industrial customers on the corridor, held against the backdrop of concerns over significant discrepancies between electricity supplied and energy accounted for by market participants.

In attendance at the engagement were the managing director/chief executive officer and executive directors of NISO, representatives of the Transmission Company of Nigeria (TCN), the managing directors of Ibadan Electricity Distribution Company and Ikeja Electric, as well as representatives of companies operating within the corridor.

The minister, however, gave assurance of sustained power supply to industries on the 132kV Ikorodu-Sagamu line, adding that the Federal Government would clamp down on energy theft and meter bypassing to protect the integrity of the grid.

The Ikorodu-Sagamu corridor has grown into a major industrial cluster, serving some of the country’s largest electricity consumers. 

However, increased visibility of power flows through the Nigerian Independent System Operator’s (NISO) technology-based monitoring systems since 2024 has exposed troubling anomalies in energy consumption and loading patterns on the corridor.

By 2026, the discrepancies had become increasingly difficult to reconcile, with losses on the corridor reaching as high as 100MW, resulting in a loss of N120 billion in one year.

Tegbe, while speaking at the parley, said the government’s priority was to ensure that industries had the electricity required to sustain production and investment, but stressed that reliable supply must be matched by responsible consumption and accurate payment.

The minister urged stakeholders to establish the facts through a transparent, scientific and fair investigation, adding: "We must know where the power is going and what is compromising it."

This was just as he warned that the government would not tolerate meter tampering, deliberate interference with energy measurement, manipulation of data or any other form of energy theft that deprives the electricity market of legitimate revenue.

Tegbe urged all parties to approach the process with openness and a commitment to resolving the outstanding issues, stressing that the sustainability of Nigeria’s power sector depends on accountability from every participant.

"Every consumer must be responsible for its actions and consumption,” he said.

Managing Director/CEO, of NISO, Abdu Bello Mohammed, in his remark, said the issue goes beyond routine technical checks, noting that it has implications for power system security, the integrity of electricity measurement and market discipline. 

Mohammed further noted that the Ikorodu–Sagamu corridor had grown into a major industrial load axis following network reinforcements and new connections, increasing the need for accurate measurement and accountable allocation of system costs.

According to him, steps must be taken to ensure every megawatt and megawatt‑hour entering and leaving the corridor is properly measured, accounted for and attributable to the appropriate market participant.

"We must ensure every megawatt and megawatt‑hour entering and leaving the corridor is properly measured, accounted for and attributable to the appropriate market participant," he said.

Mohammed emphasised that NISO is not prejudging any participant but is focused on establishing facts through credible technical evidence and due process.

The ongoing investigation has involved validation of reference metering infrastructure, physical inspections of industrial substations and electrical installations, and technical checks of metering and measurement systems. 

NISO has issued formal notices to some facilities following preliminary findings that require explanation, remediation or further inquiry.

To improve diagnostic capability, NISO said it has incorporated additional parameters into its monitoring architecture, including power factor, active and reactive power components and harmonic measurements. 

These metrics will help determine whether technical, operational or measurement-related factors are contributing to the discrepancies.

Mohammed, therefore, urged full cooperation from all stakeholders, especially in granting access to facilities, meters, operational records and historical data needed for the probe.

The NISO boss also warned against actions that could frustrate the investigation or obscure normal operating profiles, such as altering operating configurations, transferring load, or modifying electrical characteristics during the inquiry.

"Every consumer and participant connected to the national grid has a responsibility to be accountable for its actions and energy consumption," he said, adding that compliant customers should not be disadvantaged by practices that undermine the integrity of the electricity market.

Mohammed affirmed the NISO's commitment to conduct the probe professionally, objectively and without prejudice, deploying technical expertise and forensic tools to establish the facts. 

He expressed confidence that the stakeholder engagement would produce solution‑oriented outcomes to protect grid security, strengthen market integrity and restore public confidence in the Nigerian Electricity Supply Industry.

Regulatory and market stakeholders have been asked to await the results of the technical and forensic work before any enforcement or remedial measures are taken publicly, with timeline for completion of the investigation not yet disclosed.