Stakeholders in Nigeria’s electricity sector have called for amendments to the Electricity Act to establish special courts and dedicated taskforces for the speedy prosecution of electricity theft and infrastructure vandalism, describing the offences as major threats to the stability and efficiency of the power sector.
The recommendation formed part of a communiqué issued at the end of a stakeholders’ parliamentary roundtable held in Lagos and organised by the House of Representatives Ad-hoc Committee on the Probe of Power Sector Reform and Expenditure in the Nigeria Electricity Supply Industry (NESI).
The communiqué was signed by the chairman of the committee, Hon. Ibrahim Almustapha, representing Sokoto State, and the committee’s clerk, Dr. Abubakar Muri.
The stakeholders stressed the need for stronger legal and institutional measures to tackle the persistent vandalism of electricity infrastructure and rampant energy theft, which they said continue to undermine investments and service delivery across the value chain.
They urged the government to designate electricity infrastructure as a national asset through legislation, arguing that any tampering with such facilities should attract criminal liability enforceable by the state rather than being treated merely as a civil offence.
“There is need to re-visit the Electricity Act to provide special court to punish vandalises and energy theft and also drone technology should be used to monitor the lines,” the communiqué stated.
The stakeholders also recommended the deployment of modern surveillance technologies, including drones, to monitor transmission lines and other critical electricity assets in order to curb vandalism and sabotage.
On transmission infrastructure, they urged the Transmission Company of Nigeria (TCN) to prioritise the completion of ongoing critical and viable projects before embarking on new ones. They also called on the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Independent System Operator (NISO) to establish ancillary service mechanisms aimed at improving network efficiency and reliability.
To address persistent losses within the electricity system, the stakeholders advocated the establishment of mechanisms to reduce energy losses resulting from technical inefficiencies.
They further recommended the liberalisation of electricity metering to make meters more affordable and accessible to consumers, while proposing that debts owed to Distribution Companies (DisCos) by government agencies should be deducted at source after due reconciliation.
In a major structural recommendation, the stakeholders called for the divestment of government ownership in TCN and proposed that electricity Generation Companies (GenCos) and Distribution Companies (DisCos) become shareholders in a privatised transmission company.
According to them, such ownership participation would align interests across the electricity value chain since both generation and distribution operators rely heavily on an efficient transmission network.
Following the removal of electricity subsidies, the stakeholders urged the adoption of a cost-reflective and efficient tariff regime capable of sustaining investments while ensuring service delivery.
They also called for greater harmonisation between federal and state electricity regulators to avoid regulatory conflicts as states increasingly establish their own electricity markets under the Electricity Act 2023.
However, they maintained that the Electricity Act 2023 should continue to provide the overarching legal framework, particularly in instances where state regulators or policy decisions drive market operations.
The stakeholders further recommended opening up metering activities to banks and telecommunications companies to accelerate meter distribution and bridge the country’s metering gap.
In addition, they advocated the utilisation of coal as an alternative energy source, noting that Nigeria possesses significant coal deposits with relatively low sulphur content and commercially viable reserves.
“The use of coal as an alternative source of power is recommended; this is because the coal found in many parts of Nigeria have very low Sulphur content and are available in commercial quantities,” they stated.
The communiqué also emphasised the need to encourage private sector investment in state-based generation, transmission and distribution projects of up to 100 megawatts serving industrial and commercial clusters.
The stakeholders pointed to the Aba Integrated Power Project as a model capable of addressing longstanding transmission and distribution challenges across the country.
They also called for stricter enforcement of contractual provisions governing electricity distribution companies, noting that existing regulations provide for the revocation of licences of non-performing DisCos after five years.
According to them, despite more than 13 years since the privatisation of the power sector, the provision has not been enforced.
“Thirteen years have passed with no enforcement; the National Assembly must compel immediate enforcement of this provision with no further extension or forbearance,” the communiqué stated.
To strengthen the gas-to-power value chain, the stakeholders advocated the expansion of gas processing and compression facilities through mandatory investment conditions attached to upstream petroleum licences.
They also recommended the promotion of public-private partnerships for financing gas pipeline and compression infrastructure projects, as well as the enactment of laws requiring corrective and preventive maintenance schedules for all gas-to-power infrastructure, backed by regulatory audit powers.
The stakeholders maintained that reducing the frequency of national grid disturbances and collapses would require stronger collaboration among governments, security agencies and host communities to protect transmission infrastructure from vandalism and sabotage.
Speaking at the event, Chairman of the House Ad-hoc Committee, Hon. Ibrahim Almustapha, reaffirmed the commitment of the House of Representatives to a comprehensive review of existing laws and regulations governing Nigeria’s power sector.
According to him, lawmakers are focused on identifying duplications, inconsistencies and obsolete provisions within the current legal framework with a view to proposing amendments and new legislation where necessary.
He said the objective is to provide greater regulatory clarity, strengthen institutional mandates, encourage competition where feasible, protect consumers and vulnerable groups, and promote renewable energy and off-grid electricity solutions.
Almustapha added that the House remains committed to creating a stable legal environment capable of attracting both public and private investment into the sector.
“The House is committed to providing legal certainty for both public and private investments and will not shy away from bold legislative reforms where they are clearly justified and supported by evidence,” he said.
