The recently enacted Electricity Act 2023 (EA) in Nigeria has introduced stricter penalties for various forms of electricity theft and related offenses, aiming to curb the rampant loss of power in the country. Under the new law, offenders face hefty fines and imprisonment for illegal connections, meter tampering, destruction of infrastructure, and other unlawful activities within the power sector.
The law, which replaces the Electricity Power Reform Act (2005), targets individuals involved in tapping power, bypassing meters, damaging or destroying meters, among other offenses. Offenders could face fines of up to three times the financial gain from the theft or imprisonment for a minimum of three years, or both.
Power theft has been a significant issue in Nigeria, with estimates suggesting that the country loses up to 40 percent of electricity generation due to theft, particularly by unmetered customers. The law seeks to address this challenge by imposing severe penalties on perpetrators.
Furthermore, the law emphasizes the importance of prompt resolution of customers’ complaints by electricity distribution companies (Discos). It sets specific timelines for addressing various issues, such as new power connections, meter repositioning, equipment faults, and planned power outages, to ensure efficient service delivery.
However, the recent increase in electricity tariffs has sparked controversy, with stakeholders expressing concerns about its impact on consumers. The National Union of Electricity Employees (NUEE) criticized the tariff hike, arguing that it would exacerbate the economic challenges facing Nigerians, especially amid the prevailing low purchasing power and high unemployment rates.
The NUEE called for the withdrawal of the tariff hike, emphasizing the need for a more comprehensive energy policy that prioritizes the welfare of citizens and supports the growth of the real sector. The union also raised safety concerns for its members, highlighting the risks they face during disconnection exercises in communities.
Overall, the enactment of the Electricity Act 2023 reflects Nigeria’s commitment to tackling electricity theft and improving service delivery within the power sector. However, addressing concerns related to tariff hikes and ensuring stakeholder engagement will be crucial for achieving sustainable progress in Nigeria’s energy sector.