FG Raises Alarm Over Illegal Electricity Connections by Lagos Companies to National Grid

FG Raises Alarm Over Illegal Electricity Connections by Lagos Companies to National Grid

The Federal Government has vowed to take action against companies in Lagos State allegedly stealing up to 150 megawatts of electricity daily by connecting their factories directly to the national grid without authorisation from distribution companies.

Minister of Power Joseph Tegbe said the government would pursue the unnamed firms and recover unpaid electricity charges as part of efforts to reduce technical losses and improve power supply.

Speaking at an energy forum in Lagos, Tegbe said the illegal connections were discovered while the government was working to address electricity challenges along the Lagos corridor.

Lagos Companies Under Fire as FG Uncovers Illegal Connections to National Grid
FG Raises Alarm Over Illegal Electricity Connections by Lagos Companies to National Grid
Source: UGC

He described the practice as large-scale energy theft involving industrial facilities rather than individual households.

“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,” the minister said.

FG Moves to Address Electricity Losses

Tegbe said tackling unauthorised connections was part of broader efforts to improve the efficiency and reliability of Nigeria’s electricity network.

Read also

House of Reps issues 7-day ultimatum to MTN, Airtel, Globacom over poor network

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

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

“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 government has also commenced a nationwide technical audit of electricity infrastructure to identify faults and ensure that interventions target specific problems across the sector.

Ageing Infrastructure Under Review

The minister identified ageing transmission infrastructure as one of the factors contributing to persistent electricity challenges, noting that some facilities had been in operation for approximately 50 years.

He 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 Tegbe, the government is working to isolate Lagos and Abuja from disruptions originating elsewhere on the national grid. The approach is intended to improve stability and prevent disturbances in one location from affecting electricity supply in other areas.

Read also

RTEAN asks FG to establish Bank of Transportation, offers loans at 4% interest

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 broader efforts to address infrastructure weaknesses, reduce electricity losses and improve power supply across the country.

Source: Legit.ng

Authors:
Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.