FG orders probe as Ikorodu-Sagamu power losses hit N120 billion
By Aboki Forex —
The Federal Government has ordered a transparent, data-driven investigation into power losses of up to 100MW along the 132kV Ikorodu-Sagamu industrial corridor. The discrepancies are estimated to have cost the electricity market N120 billion in lost revenue in one year.
Minister of Power, Joseph Tegbe, spoke on Friday at a stakeholder meeting with industrial operators, electricity market participants and regulators. He directed stakeholders to investigate the gap between electricity transmitted through the corridor and the volume ultimately billed and accounted for by distribution companies.
Where the power is going
Tegbe said the investigation follows increased monitoring of the corridor, which has grown into a major industrial manufacturing hub serving large electricity consumers.
“We must know where the power is going and what is compromising it,” the minister said. “Every consumer must be responsible for its actions and consumption,” he added.
Tegbe explained that the Nigerian Independent System Operator (NISO) has deployed technological monitoring tools. These tools have revealed unusual loading patterns and significant discrepancies in energy flows across the network.
The government wants to establish whether the losses are linked to meter tampering, deliberate manipulation of consumption data, illegal connections, infrastructure interference or other forms of electricity theft.
Accountability and existing measures
Tegbe said the government would not tolerate practices that undermine the electricity market. He stressed that consumers must be held accountable for the power they actually use.
The investigation is expected to bring together technical and commercial data from the transmission and distribution segments to determine where the unaccounted electricity is being lost.
Several initiatives have already been introduced to encourage Nigerians to recognise energy theft as both an anti-social act and a criminal offence. Ikeja Electric in 2021 introduced incentive schemes to reward whistleblowers who provide information leading to the exposure of energy theft within its network.
Nosa Igbinedion, Chief Executive Officer of West Power and Gas, has said the Nigeria Electricity Act empowers states to establish regulations and laws to guide electricity operations within their jurisdictions. According to him, Nigeria records average Aggregate Technical, Commercial and Collection (ATC&C) losses of about 45 per cent, translating to annual losses estimated at over N100 billion.
Implications for the power market
The scale of the reported losses could have significant implications for the financial sustainability of the electricity market if the investigation confirms that a substantial portion is attributable to theft or other commercial leakages.
In 2025, the Nigerian Electricity Regulatory Commission (NERC) introduced new penalties for individuals and businesses found guilty of bypassing electricity meters.
The meeting brought together senior officials from NISO and the Transmission Company of Nigeria (TCN), as well as the management of Ikeja Electric and Ibadan Electricity Distribution Company and representatives of industries operating along the corridor.
For Nigerian businesses, the outcome of this probe could shape how industrial clusters are billed and how far the government is willing to go to protect the electricity market from revenue leakage. Reliable power, Tegbe said, depends on stronger accountability, accurate metering and payment for electricity consumed.