FG orders investigation as Ikorodu–Sagamu power losses hit N120 billion

The Federal Government has raised the alarm over power losses of up to 100 megawatts (MW) along the 132kV Ikorodu–Sagamu industrial corridor, with the discrepancies costing the electricity market an estimated N120 billion in lost revenue in one year.

Minister of Power, Joseph Tegbe, expressed the concern on Friday at a stakeholder meeting with industrial operators, electricity market participants and regulators.

Tegbe directed stakeholders to conduct a transparent, data-driven investigation into the gap between electricity transmitted through the corridor and the volume ultimately billed and accounted for by distribution companies (DisCos).

What the Minister is saying

The investigation follows increased monitoring of the corridor, which has developed 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.

According to the Minister, the Nigerian Independent System Operator (NISO) has deployed technological monitoring tools that have revealed unusual loading patterns and significant discrepancies in energy flows across the network.

He added that the government is seeking 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.

Tegbe said the government would not tolerate practices that undermine the electricity market, stressing 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.

The intervention comes as the government seeks to improve electricity supply to industrial clusters while addressing the financial weaknesses that continue to affect Nigeria’s power sector.

However, he linked reliable power to stronger accountability, accurate metering and payment for electricity consumed.

Get up to speed

Several initiatives have been introduced to encourage Nigerians to recognise energy theft as both an anti-social act and a criminal offence.

As part of efforts to curb the menace, Ikeja Electric in 2021 introduced incentive schemes to reward whistleblowers who provide information leading to the exposure of energy theft within its network.

Nairametrics previously reported that Nosa Igbinedion, Chief Executive Officer of West Power and Gas, 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.

What you should know

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.