The chairman-designate of the Nigerian Electricity Regulatory Commission (NERC), Engr. Abdullahi Ramat, has unveiled sweeping reforms to tackle endemic challenges in the power sector, vowing to work with the Economic and Financial Crimes Commission (EFCC) to curb electricity theft, meter bypass, and illegal connections.
Speaking in Abuja, Ramat said his administration would prioritise the use of technology to address inefficiencies that have plagued the electricity value chain for decades.
He disclosed plans to launch a mobile application, available on both Android and iOS, that will integrate with the Application Programming Interfaces (APIs) of Distribution Companies (DISCOs) and the National Independent System Operator (NISO), giving NERC real-time visibility into payments and operations.
“We will also deploy a whistleblowing tool, similar to the community policing software LURA app I pioneered at the local government level. This will empower citizens to anonymously report electricity theft, meter bypass, and illegal connections,” he said.
Ramat stressed that the EFCC would play a central role in enforcement, borrowing from the agency’s recent success in combating naira mutilation.
He outlined a strategy of arrests, prosecutions, and name-and-shame campaigns against offenders, with violators facing penalties of up to three years’ imprisonment as provided under Section 208 of the Electricity Act 2023.
“This approach will curb electricity theft and help reduce tariffs, since part of these losses are unfairly factored into consumer bills. Honest customers should not continue paying for the crimes of electricity thieves,” he declared.
The NERC chairman lamented that almost half of Nigeria’s generated power is lost due to inefficiencies, leaving the sector with barely 50 per cent operational capacity. This, he argued, has discouraged investors and worsened the liquidity crisis despite two decades of reforms and 12 years of privatisation.
“While the telecoms sector has thrived under privatisation, the power sector continues to suffer because of its fragmented ownership structure. With NERC as the apex regulator, however, we have the mandate to drive full digitisation across the value chain,” he said.
According to Ramat, modern IT tools can optimise operations, integrate payment and monitoring systems, stabilise the grid, enforce transparency, and reduce Aggregate Technical, Commercial, and Collection (ATC&C) losses.
He contrasted Nigeria’s reliance on outdated systems with global trends, noting that advanced economies embrace blockchain, artificial intelligence, machine learning, and cloud computing, while many African governments lag.
“Without urgent action, governments risk losing their ability to tax, regulate, and safeguard sovereignty, creating a chaotic digital Wild West. Technology is no longer optional – it is the engine of national competitiveness. For Nigeria to thrive globally, automation and e-Governance must move from aspiration to action,” he warned.
Ramat expressed confidence that digitisation would restore investor confidence, protect consumers, attract competition, increase liquidity, and reduce tariffs.
“This is not theory – it is achievable,” he concluded.
