- Over 68 per cent of Nigerian consumers reportedly bypass prepaid meters.
- Industry leaders call for more vigorous enforcement and fairer electricity pricing.
Nigeria’s power sector now faces a growing meter bypass crisis, as new data shows that over 68 per cent of electricity users bypass prepaid meters.
The Nigerian Independent System Operator (NISO) revealed the scale of the challenge during the fifth annual conference of the Power Correspondents Association of Nigeria in Abuja. The meter bypass crisis reflects deep economic hardship and exposes long-standing weaknesses in electricity governance.
Industry experts at the event urged the government to strike a balance between cost-reflective pricing and consumer protection. They argued that the sector needs financial stability, yet many households cannot cope with higher bills. Consequently, the gap between tariff requirements and consumer ability remains wide, and this gap continues to weaken revenue collection.
Audu Lamu, Managing Director of Mainstream Energy Limited and a member of the NISO board, addressed the situation through his representative, Abdu Bello Mohammed, Managing Director and CEO of NISO. He explained that inflation, unemployment, and weak purchasing power now limit many families’ ability to pay for electricity.
He added that millions still lack a reliable supply, even when connected to the national grid. As a result, access challenges combine with affordability issues, and both problems exacerbate energy poverty nationwide.
He noted that cost-reflective tariffs remain essential for sector stability. However, he stressed that pricing reforms must avoid worsening poverty. He recommended targeted subsidies and lifeline tariffs to protect low-income consumers while preventing wasteful spending. He also argued that the tariff debate should focus on striking a balance between commercial viability and social fairness.
NISO’s General Manager, Ali Bukar, warned that widespread meter bypassing continues to cripple sector finances. He called for more vigorous enforcement and increased use of digital tools to detect and prevent theft. Furthermore, he urged distribution companies to adopt better monitoring systems to reduce losses.
PCAN Chairman, Obas Esiedesa, highlighted escalating financial pressure on the industry. He revealed that the federal government owes generation companies about ₦6 trillion. This debt burden adds to liquidity shortages, gas supply disruptions, weak transmission infrastructure, and rising foreign exchange costs. These challenges discourage investment and prolong the sector’s instability.
Energy analysts at the conference warned that Nigeria risks long-term stagnation in its power sector unless it adopts a unified reform plan. They called for more vigorous enforcement, fair pricing, and improved consumer protection to restore confidence and secure sustainable electricity delivery.