Nigeria’s electricity sector sits at a crossroads. While reforms have opened the door for private participation, the persistent theft and vandalism of transformers continue to drain resources, disrupt supply, and deepen the burden on households and businesses. Communities are left in darkness, forced to rely on alternatives, while the economy suffers from lost productivity and weakened investor confidence.
This article explores the history of Nigeria’s power challenges, the economic toll of unreliable supply, and the alarming rise of transformer vandalism. It highlights how households and businesses are coping, lessons from other countries, and the shared responsibilities of citizens, utilities, regulators, and government. Most importantly, it offers policy recommendations and public-private partnership opportunities to secure Nigeria’s electricity future and truly move from darkness to light.
The Nigeria’s power journey: From NEPA to today
When we talk about electricity in Nigeria, we are really talking about the story of our nation’s growth, struggles, and resilience. Many of us grew up hearing the phrase “NEPA never fails”, a sarcastic reminder that blackouts were part of our daily lives. This is not just history; it is lived experience for millions of Nigerians, including myself.After independence, electricity supply was managed by the Electricity Corporation of Nigeria (ECN) and the Nigerian Waterways, which were later merged into what became the National Electric Power Authority (NEPA). For decades, NEPA symbolized a centralised system, one utility responsible for everything, yet unable to meet the demands of a growing population. Poor maintenance, frequent outages, and underinvestment which left the citizens frustrated and businesses struggling.
Recognizing this crisis, the government began reform efforts in the early 2000s. The National Electric Power Policy (2001) and the Electric Power Sector Reform Act (2005) laid the foundation for change. These reforms created the Nigerian Electricity Regulatory Commission (NERC) and transformed NEPA into the Power Holding Company of Nigeria (PHCN), paving the way for private participation in electricity generation and distribution.
In 2013, a landmark moment arrived: much of PHCN’s generation and distribution assets were privatized, leaving transmission under state control. The hope was high that private investment would inject efficiency and innovation into a broken system.
But a decade later, the reality is sobering. Nigeria still struggles with a mismatch between installed capacity and actual generation. Gas shortages, poor maintenance, transmission losses, and distribution inefficiencies keep us in the dark more often than we should be. Meanwhile, demand for power grows daily as our population expands and industries try to thrive.
Powering growth: The economic case for reliable electricity
Electricity is not just about lighting up homes, it is the backbone of every modern economy. In Nigeria, the cost of unreliable power is one that we all feel deeply. I have seen businesses shut their doors, families cut back on essentials, and young people struggle to study at night and write examination under darkness because the lights go off yet again.
For businesses, reliable power means survival. It keeps industrial machines running, reduces downtime, and prevents spoilage of perishable goods. Small and medium enterprises (SMEs) who are the true engine of Nigeria’s economy, depend on affordable electricity to grow. Every hour without power forces them to spend more on the alternatives or shut down completely, hence eating into already thin profit margins.
Households also pay a heavy price for unreliable supply. Many families spend more on generators than on food, not to mention the stress of constant fuel purchases and generator repairs. A reliable electricity would reduce this burden. A stable and affordable electricity supply will ensure the provision of stable lighting for education, refrigeration for food and medicine, clean water, and healthier living conditions without the smoke and noise of generators.
At the macroeconomic level, the stakes are even higher. Power supply shapes investors’ confidence, production costs, and overall competitiveness. When electricity is erratic, inflation rises because production becomes more expensive. Government revenues are also affected, since utilities pay taxes and fees shrink when the sector underperforms. In short, weak power supply drives up the cost of doing business drastically, and Nigeria’s economy pays the price.
This situation more than infrastructure; it is about enabling prosperity. Reliable power is the foundation on which jobs, innovation, and social welfare are built. Without it, every other economic plan becomes harder to achieve.
The hidden costs of electricity supply: Vandalism, theft, and a fragile grid
Nigeria’s power sector is already fragile, but transformer vandalism and theft have turned an existing crisis into a deeper wound. What should power our homes and businesses is now being stripped away, leaving the entire communities in darkness and pushing families and companies into further hardship.The scale of the problem is alarming. Kano Electricity Distribution Company (KEDCO) once reported over 6,000 transformers vandalized across Jigawa, Kano, and Katsina states during just a four-day nationwide blackout (Pulse Nigeria, Feb. 2025). In Rivers State, police recovered a 1,000 KVA transformer worth ₦52 million stolen from an estate (Guardian, June 2025). Jos Electricity Distribution Company (JEDC) has also recorded dozens of transformers and cables stolen in a matter of months. Even transformer oil which is essential for cooling is stolen and resold.
Who steals our light? The actors behind the vandalism and theft
But who is behind these acts? It is not always highly skilled technicians. Sometimes, it is organized criminal gangs with access to scrap markets. Other times, it is opportunists even community insiders who are taking advantage of outages or poorly secured equipment. With basic tools like crowbars or cutters, they dismantle vital infrastructure, which is often at the risk of electrocution or fire.
The financial toll is crushing. Beyond the direct cost of replacing stolen equipment which can run into millions of naira in individual cases, there are ripple effects. Businesses lose productivity, manufacturers watch goods spoil, hospitals and schools face disruptions, and families are forced to spend more on fuel. Appliances are damaged by unstable supply, and every outage deepens reliance on the alternatives which middle and low income Nigerians might not be able to afford.
These thefts expose deeper structural weaknesses in the power sector. Infrastructure is often poorly maintained and unsecured, with little fencing, lighting, or monitoring. Legal enforcement is weak; even when arrests happen, convictions are rare and penalties too small to deter repeat offenders. Distribution companies, already under financial strain from low collection rates and tariff disputes, cannot absorb these losses without passing the cost back to consumers. Worse still, underinvestment in grid resilience means that when one transformer goes down, entire communities are plunged into prolonged blackouts. These challenges demand urgent attention. Every stolen transformer is not just an economic loss but a stolen opportunity for development, a setback for schools, hospitals, and industries, and a blow to the confidence of investors and citizens alike.
The price of darkness: The hidden costs to homes and businesses
Behind every blackout and every stolen transformer lies a story of financial strain. For many Nigerians, electricity is not just a utility bill. It is a constant drain on household income and a hidden tax on business operations.
Let us begin with families. Across the country, households spend a significant share of their monthly income on alternative power such as generators, fuel, solar panels, and batteries. According to the World Bank, Nigerians spend nearly $14 billion annually on small-scale generators alone, often at a cost per kilowatt-hour that is several times higher than grid electricity. Parents who should be saving for school fees or medical needs are instead budgeting for diesel. Students preparing for examinations read by flashlight or candlelight. For the low and middle class, this is an exhausting cycle that eats into their financial security.
For businesses, the financial implications are even more dramatic. Manufacturers face higher production costs when they must run their plants on diesel. Cold storage facilities which are critical for agriculture, pharmaceuticals, and food security risk losing entire inventories during prolonged outages. SMEs, which form the backbone of Nigeria’s economy, are forced to cut working hours or close shop altogether when power fails. A bakery in Lagos or a tailoring shop in Kaduna cannot survive long when daily energy costs exceed profits.
At the national level, unreliable power inflates the cost of doing business. It drives up inflation because goods and services become more expensive to produce. It reduces investor confidence, as no serious investor will pour money into a market where electricity is uncertain. Government revenues are also affected: when distribution companies (DisCos) spend heavily to replace vandalized equipment or struggle with losses, their tax contributions shrink, and the state is left with fewer resources for development.
Then comes the hidden social cost. Hospitals running on generators spend funds that could have gone into medicines and equipment. Schools cut classes short. Job opportunities vanish when small firms fold under the weight of fuel costs. The cycle of poverty deepens, not because Nigerians are unwilling to work, but because the system around them cannot keep the lights on.
These financial realities should be a wake-up call. Electricity is not an abstract infrastructure issue. It is the foundation of economic resilience. Without affordable and reliable power, Nigeria’s families will remain overburdened, its businesses underpowered, and its economy underperforming.
Coping with blackouts: The survival strategies of homes and businesses
When the grid fails, Nigerians do not sit still. We adapt. From households in rural villages to bustling urban SMEs, coping with unreliable electricity has become a way of life. Yet, these coping mechanisms, while creative, often come at a heavy cost.
In many homes and business centres, the hum of small generators is as familiar as the evening call to prayer. Families rely on them to power fans, fridges, or a few lightbulbs. But this reliance comes with soaring expenses. A bag of rice may last weeks, but a few litres of petrol barely keeps the lights on for long. Beyond the cost, there is also the health burden: fumes from small generators are linked to respiratory problems, while noise pollution has become a silent stressor in many communities.
Those who can afford it are turning to solar power as a more sustainable option. Rooftop panels and home inverters are popping up in estates and even small towns. This shift reflects a growing awareness that renewable energy can provide long-term stability. But the upfront cost of solar systems remains high and this put them out of reach for many low-income families. For the middle class, it often means sacrificing other important needs to invest in an inverter or solar kit.
Businesses face their own set of challenges. A barbershop may ration working hours to save on generator fuel, while a tailoring shop closes early when the generator breaks down. Larger companies adopt hybrid systems, combining grid power with diesel and, increasingly, solar. For cold rooms and agro-processing firms, solar-hybrid solutions have become lifesavers though they require significant investment.
Meanwhile, tech-savvy Nigerians are finding new ways to cope. Co-working spaces and shared hubs provide reliable power for entrepreneurs who cannot afford private solutions. In some communities, residents pool funds to repair vandalized transformers or even buy new ones when DisCos are unable to respond quickly. This spirit of collective resilience is inspiring but it is also a reminder of how much ordinary citizens are forced to take on roles that should be handled by a functioning system.
What is clear is that coping is not the same as thriving. These stopgap solutions allow families and businesses to survive, but they deepen inequality. The wealthy can afford solar rooftops; the poor are stuck with smoky generators or complete darkness. This message is urgent: Nigerians should not have to cope indefinitely. They deserve sustainable power that fuels growth, and not just survival.
Lessons from Africa and beyond
Nigeria is not alone in its struggle with unreliable electricity and vandalism. Across Africa and beyond, other nations have faced similar crises and while none have solved the problem overnight, their experiences offer valuable lessons for us.
Like Nigeria, Uganda once faced rampant theft of transformer oil and vandalism of power equipment. But the country responded with a mix of technology and regulations. Utilities installed GSM-enabled sensors that immediately alert operators when oil levels drop abnormally, while stricter penalties were enforced for scrap dealers found of buying stolen parts.
Community awareness campaigns helped residents to understand that stolen equipment meant stolen opportunities for everyone.
South Africa has long battled copper cable theft, which disrupted railways, power lines, and communication networks. Their solution combined law enforcement crackdowns with targeted actions against illegal scrap markets. Importantly, they tightened export regulations on scrap metal, making it harder for stolen copper to leave the country. This reduced the incentive for large-scale theft and sent a message that infrastructure crimes would not be tolerated.
Looking further, India’s power sector reforms also carry lessons. India faced decades of unreliable supply, theft, and poor maintenance. Through sustained reforms including unbundling utilities, encouraging private investment in distribution, and rolling out prepaid metering systems, India improved transparency and reduced non-technical losses. Prepaid meters, in particular, curbed energy theft and improved cost recovery for utilities.
Even Kenya offers hope. Its ambitious investments in renewable energy, especially geothermal and wind, have not only reduced reliance on expensive diesel but also stabilized the grid. By diversifying its energy sources and making renewables central to its national strategy, Kenya has positioned itself as an energy hub in East Africa.
The common thread in all these examples is clear:
• Strong policy enforcement that makes vandalism and theft unattractive.
• Technology adoption to detect, prevent, and respond to tampering.
• Community ownership and awareness, which helps citizens to see infrastructure as theirs to protect.
• Private sector partnerships to bring innovations, investment, and accountability into the system.
For Nigeria, these lessons show that progress is possible. It requires more than patchwork solutions but political will, investment in modern technology, stronger laws, and an engaged citizenry. Other nations have walked this road. If they can turn the lights back on, so can we.
Who protects the power? Shared duties in securing Nigeria’s electricity
If electricity is the lifeline of our economy, then securing transformers and power infrastructure must be everyone’s business. Too often, fingers are point at government or DisCos when vandalism strikes, but the truth is that keeping the lights on requires collective responsibility from communities to regulators.
Communities and users
When citizens see transformers as “our property,” vigilance grows. Neighborhood watch systems, reporting suspicious activity, or pooling resources for fencing and lighting have already deterred vandals in some estates. Protecting a transformer means protecting livelihoods.
Estate owners and landlords
For landlords and estate managers, rent collection is not enough. Securing transformer sites with reliable barriers, armed guards, or CCTV is critical. The cost is far less than replacing stolen equipment or enduring prolonged blackouts.
DisCos
As custodians, DisCos must step up: deploy sensors, alarms, and preventive maintenance. Sensitize communities on safeguarding of power infrastructure and partner with local communities’ actor as watchdogs. Have a clear communication system with the estates and communities to build trust and speed up response in case of challenges. This kind of partnership encourages protection.
Police and security agencies
Enforcement is weak. Arrests happen, but convictions are rare. Vandals and scrap dealers must face real consequences. Infrastructure crimes deserve the same priority as other national security issues.
Government and regulators
The Nigeria Electricity Regulatory Commissions (NERC) and policymakers must tighten scrap market regulations, enforce harsher penalties, and fund infrastructure security. Public-private partnerships can bring in technology and finance for lasting solutions.
Lighting the way: Policies and partnerships for reliable power
- Tougher Laws & Enforcement – Treat vandalism as economic sabotage, regulate scrap markets, ensure swift convictions.
- Technology Deployment – Use drones, CCTV, GSM sensors to prevent theft.
- Public-Private Partnerships – Share costs of securing transformers, develop solar-hybrid mini-grids.
- Community Ownership – Drive awareness campaigns, form local “power committees” to safeguard assets.
- Diversify Energy Sources – Invest in solar, hydro, wind to ease pressure on the grid.
- Financial Resilience – Strengthen tariffs, prepaid metering, and collections so DisCos can maintain assets.
Closing thoughts
Reliable electricity is about more than wires but about jobs, education, healthcare, and economic opportunity. Nigeria’s turning point lies in shared responsibility which is seen when communities, investors, regulators, and government act together. It is time to stop patching cracks and start building a foundation strong enough to carry our nation’s future.
Dr. Aremu Fakunle is a Senior Agribusiness and Public Policy Expert based in Abuja, Nigeria.
