Energy theft: Nigeria proposes electricity offences tribunal
Nigeria is looking to set up an electricity offences tribunal that would empower the Nigerian Electricity Management Services Agency to prosecute offenders in a bid to check energy theft. Can artificial intelligence be an option for Nigeria as the world looks to AI to address energy theft. George Otomi, Founder, George Etomi & Partners joins CNBC Africa for this discussion.
Mon, 24 Jun 2024 11:57:11 GMT
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AI Generated Summary
- The establishment of an electricity offenses tribunal by NEMSA underscores Nigeria's commitment to tackling energy theft and ensuring revenue assurance in the electricity sector.
- The integration of AI technology, including STS global standard meters, offers a viable solution to combat meter bypassing and enhance transparency in electricity consumption.
- The approval of 21 billion Naira for the meter acquisition fund by NERC highlights the pressing need to address the metering gap and improve power supply across Nigeria.
Nigeria is taking a bold step in the fight against energy theft with the proposal to establish an electricity offenses tribunal. The tribunal, which will be managed by the Nigerian Electricity Management Services Agency (NEMSA), aims to prosecute offenders and curb the rampant theft of electricity in the country. George Etomi, the founder of George Etomi Partners, shed light on the challenges posed by energy theft and the importance of finding local solutions to address this pressing issue.
According to Etomi, Nigeria has been grappling with significant revenue losses, estimated to be between 35 and 40 percent, due to energy theft. NEMSA is set to amend the Electricity Act to introduce electricity theft tribunals, signaling a proactive approach to combat this widespread problem. Specialized tribunals, similar to those established during the banking crisis, are deemed necessary to expedite the legal process and ensure swift justice for offenders.
Moreover, the incorporation of artificial intelligence (AI) and advanced technology in the electricity sector could revolutionize the fight against energy theft. Etomi highlighted the importance of deploying STS global standard meters, equipped with unique 20-digit codes and enhanced encryption features, to deter meter bypassing, a common method of theft. These smart meters enable consumers to monitor and manage their electricity consumption remotely, enhancing transparency and accountability in the system.
While the implementation of AI meters holds promise for the Nigerian market, challenges persist, particularly in metering capacity. Despite the approval of 21 billion Naira by the Nigerian Electricity Regulatory Commission (NERC) for the meter acquisition fund, there remains a substantial gap of 7 million meters to be addressed. Etomi emphasized the critical role of metering in improving power supply and underscored the need for sustained efforts to enhance meter deployment across the country.
The infusion of AI technology in the electricity sector not only offers a solution to combat energy theft but also holds the potential to attract investments and drive economic growth. By leveraging advanced metering systems and adopting innovative approaches to tackle electricity theft, Nigeria can pave the way for a more efficient and sustainable energy sector. With strategic interventions and targeted investments, the country can strive towards a brighter and more electrified future.