FG Targets Lagos Firms Allegedly Stealing 150MW of Electricity Daily

The Federal Government has vowed to act against companies in Lagos State allegedly stealing up to 150 megawatts of electricity daily by connecting their factories directly to the national grid without approval from distribution companies. Minister of Power Joseph Tegbe disclosed the plan at an energy forum in Lagos, saying the government would recover unpaid electricity charges from the unnamed firms.

Tegbe said the illegal connections were discovered while the government was working on electricity challenges along the Lagos corridor. He described the practice as large-scale energy theft involving industrial facilities, not individual households.

Back charges and technical losses

“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.

He said tackling unauthorised connections formed part of broader efforts to improve the efficiency and reliability of Nigeria’s electricity network. The government is also conducting a nationwide technical audit of electricity infrastructure to identify faults and ensure interventions target specific problems.

Tegbe identified ageing transmission infrastructure as one of the causes of persistent electricity challenges. He said some facilities had been in operation for about 50 years.

The minister also disclosed plans to build a new National Control Centre to replace the existing facility in Osogbo, which he said was constructed in 1962. According to him, the government is working to isolate Lagos and Abuja from disruptions originating elsewhere on the national grid, so that instability in one location does not affect supply in other areas.

$18bn in power sector commitments

Tegbe said development finance institutions had committed approximately $18 billion to the power sector. But he criticised how previous investments had been allocated, arguing that some projects were driven by political considerations rather than sector priorities.

“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.

He said the government was reviewing its investment strategy to ensure that available funds addressed the most pressing challenges in the electricity industry.

New asset companies planned

The minister said the government was also developing two companies, the Grid Asset Management Company and the Renewable Asset Management Company, to consolidate infrastructure assets and mobilise financing. The proposed companies are expected to use their balance sheets to raise funds for investments in the sector.

The measures form part of the government’s efforts to address infrastructure weaknesses, reduce electricity losses and improve power supply across the country. For Lagos businesses, the recovery of back charges and the promised reduction in technical losses could affect electricity costs and supply reliability if the enforcement is carried through.