Electricity Theft in Nigeria: How Effective Are the Existing Laws?

Abstract

There is an overwhelming concern that if electricity theft is not controlled urgently, it will contribute immensely to a continued cycle of mountain debts and inefficiencies for not just the DISCOs but also for the GENCOs. There is an estimated average loss of about N21 billion annually in the power sector to energy theft. Against this backdrop, this paper provides a menu of options for the DISCOs in controlling electricity theft. In doing this, existing laws and regulations prohibiting energy theft in Nigeria and relevant empirical literatures were duly reviewed. Cutting edge ideas on how to combat electricity theft were drawn from cross country experiences. Experience from the United Kingdom, United States of America and South Africa coupled with Nigeria’s peculiarities informed the issues raised for legislative consideration.

Keywords: Electricity theft; existing laws; Nigeria.

JEL Classification: D11, D6