The Federal Government has accused some companies in Lagos State of illegally drawing up to 150 megawatts (MW) of electricity daily from the national grid by connecting their factories directly to the network without authorisation from local distribution companies.
Minister of Power, Joseph Tegbe, said the government would pursue the companies and recover outstanding payments for the electricity consumed, as part of efforts to reduce power losses and improve supply.
Tegbe disclosed this at an energy forum in Lagos, explaining that the illegal connections came to light during efforts to address electricity challenges along the Lagos corridor.
He described the practice as energy theft, stressing that the investigation involved companies operating factories rather than individual households.
The minister said the government intended to recover the appropriate charges from the affected businesses and reduce technical losses across the electricity network.
Beyond electricity theft, Tegbe expressed concern over how funds committed to Nigeria’s power sector had been deployed. He revealed that development finance institutions had committed approximately $18bn to the sector but criticised the selection of projects, alleging that some investments had been influenced by political considerations rather than priority infrastructure needs.
He said the government was reviewing its investment strategy to ensure that funding was directed towards projects capable of addressing the sector’s most pressing challenges.
The minister also highlighted the condition of Nigeria’s ageing transmission infrastructure, noting that some parts of the network had been in service for about five decades.
As part of efforts to modernise the system, he said the government was constructing a new National Control Centre to replace the existing facility in Osogbo, which dates back to 1962.
Tegbe added that measures to limit the impact of grid disturbances on Lagos and Abuja had helped improve electricity stability in the two cities. The government, he said, was working to prevent disruptions in one part of the country from spreading to other areas.
He further announced plans to improve funding and investment in the sector through the proposed Grid Asset Management Company (GAMCO) and the Renewable Asset Management Company (RAMCO).
According to him, the initiative would consolidate existing grid and renewable energy assets, allowing the companies to use their asset bases to raise funds instead of relying heavily on bonds and additional borrowing.
Tegbe said the government was also working to address outstanding legacy debts that have weakened confidence in the electricity market.
He disclosed that presidential approval had been secured for RAMCO, while the framework for GAMCO was still being developed.
The proposed reforms form part of the government’s broader efforts to tackle infrastructure weaknesses, improve financing and strengthen electricity delivery across Nigeria.
