The Chief Executive Officer of Eko Electricity Distribution Company (EKEDC), Rekhiat Momoh, has raised alarm over widespread electricity theft by wealthy residents and hotels.
She said the practice is one of the biggest causes of financial losses in Nigeria’s power sector.
Momoh spoke at a PwC power roundtable held recently in Lagos.
According to her, electricity theft is more common in high-income areas than in low-income communities.
Power Theft Common in High-Income Areas
Momoh said EKEDC’s experience shows that energy theft thrives where influential individuals live.
She explained that illegal connections by wealthy customers create bigger losses than theft in poorer areas.
“Energy theft is a big problem,” she said. “We have noticed that it is more prevalent where the big men live.”
She added that when high-income customers steal power, the financial impact is far greater.
Hotels Caught Bypassing Electricity Meters
In addition, the EKEDC boss revealed that some well-known hotels have bypassed electricity meters.
She said the company uncovered cases involving major commercial establishments, including four-star hotels.
According to her, such practices worsen losses across the electricity network.
“We have seen known hotels bypass meters,” she said. “Some cases are already in court.”
However, she declined to name the hotels due to ongoing legal proceedings.
EKEDC Customer Base and Sector Challenges
Momoh said EKEDC currently serves about 789,000 customers across its coverage area.
She noted that despite privatisation, Nigeria’s power sector still faces deep structural problems.
According to her, outdated systems such as manual metering make theft easier.
She also said the absence of real-time monitoring limits early detection of fraud.
Technology Gaps and Infrastructure Weaknesses
Momoh explained that EKEDC uses SCADA systems to monitor faults.
However, she said only 15 of the company’s 54 substations are currently covered.
As a result, many faults go unnoticed until customers report them.
To address this, EKEDC has acquired new fault locators to reduce downtime.
Financial Strain and Mounting Debts
The CEO said distribution companies remain under severe financial pressure.
Banks, she noted, are unwilling to lend based on paper profits.
She also blamed low power generation, legacy debts, vandalism, and unpaid bills by MDAs.
According to her, customers often move houses and leave debts behind.
Smart Metering as the Way Forward
Despite the challenges, Momoh said smart metering offers a clear solution.
She stressed that smart meters can reduce theft, improve efficiency, and boost revenue.
“What is the way forward?” she asked. “Smart meters.”
