DISCO hiked my bill from N2.7m to N29m” — Lagos Deputy Gov.

The report in a national newspaper of April 15, 2025, provided the best opportunity for all stakeholders to re-visit the matter of privatisation of electricity supply to Nigerian consumers. Put bluntly, Nigeria’s electricity Distribution Companies (DisCos) have become the greatest fraudsters in the country – far eclipsing the millions of the Yahoo boys and girls, as well as, the operators of Ponzi schemes in the trillions of illegal funds they rake in daily.

As a customer to five DisCos – two in Lagos State, and one each at Abuja, Ibadan and Kano, I can rightly claim to be an expert on their activities. None runs honest business.“The seeds of destruction were planted early with the way the ex-President Jonathan administration went about rewarding party loyalists and/or their friends with the license to operate the DisCos. 

“History does not repeat itself; man does”, History Prof. Barbara Tuchmann. President (General) Ibrahim Babangida in 1990, three years after launching the Structural Adjustment Programme, SAP, discovered that the economic initiative was not delivering the benefits promised. Instead, it was more painful than anticipated. He asked at an impromptu press conference, “why is it that economic policies which work elsewhere don’t work in Nigeria?

“He received an answer on this page 35 years ago – “Economic principles don’t work in Nigeria because they are based on two assumptions: One, that all the stakeholders are reasonable; and two, they will act honestly in all transactions.“Nigerians are neither reasonable nor honest – whether in public or private life. That is why SAP is failing; and will eventually fail’’.

Babangida and SAP did not fail, Nigerians sabotaged SAP; which was astoundingly successful in the Asian countries.

DisCos represent the largest symbol of a nation where reason and honesty are the first elements to be discarded in any transaction in Nigeria.  Where else in the world can one find a seller who is allowed, by law, to charge customers arbitrarily based on what we euphemistically call “crazy billing” or ‘‘estimated billing’’, instead of its actual synonym – theft?“Can filling stations dispense the volume of fuel they like and announce the charge to motorists without proof? Can any of the telecommunications networks – GLO, AIRTEL, MTN – deduct what they choose from subscribers’ balances without consequences?

Jonathan’s blunder

“The evil that men do lives after them” – William Shakespeare, 1564-1616. Jonathan, as usual, handed Nigerians to the most rapacious operators possible and compounded the ruinous blunder by appointing people to the National Electricity Regulation Commission, NERC, who would collaborate with the DisCos to perfect the act of robbery under license.

One of the Board Members of NERC, name and title withheld, was a Presidential candidate twice. How a fellow not known to be a billionaire would fund the ambition should have been a mystery – except that during his tenure tariffs went up three times without any improvement in service delivery and the NERC became a toothless guard dog unable to protect the rights of consumers.

Even now, while the NERC vigorously ensures tariff increases are enforced, all its deadlines given to DisCos regarding supply of pre-paid metres and end to “crazy bills” have been missed by DisCos without penalties. NERC published a report last year accusing the DisCos of over-billing customers and ordering refunds. It was roundly ignored. Nobody obeys the orders of a compromised and crooked referee.

 “Appetite grows with eating.” 

Having permitted the DisCos to get away with financial murders involving private consumers, it was not surprising that the DisCos have extended their filthy tentacles to governments and the Armed Forces. “ “Governments, Armed Forces are victims too““Last month, in my house, or the state house that I live in, the bill was N2.7m last month. This month Eko DisCo sent us a bill of N29m. I sent it to the Commissioner of Energy. It was crazy.” 

 “With all due respects to the Lagos State Deputy Governor, the demand was not crazy. It was deliberately fraudulent.“Before closing this article with a real example, we need to examine the incident reported by Dr Obafemi Hamzat. Has the building been renovated and expanded or turned from residential to factory within a month? Was tariff increased during the month? Was the Band changed from D to A suddenly? If none of these happened, what can be responsible for 10,700 per cent increase in charges in one month?  The Deputy Governor might not be aware of this; but I know, because I went to the DisCo’s office to find out how these dishonest bills arise. Seating in one room, frequently in darkness, on the third floor is the Head of Marketing; who has been given a revenue target to achieve. With that in hand, the officer, male or female, almost arbitrarily assigns charges to various customers’ accounts. Several clever individuals have colluded with the Marketing staff to have their bills permanently reduced and the excess spread over the accounts of honest consumers.  

In an article published on this page, the following was written. Thus, in December, a two-bedroom bungalow, with four residents – three working and one baby – received a bill for consuming 1144KWH. That was 184KWH more than the maximum 960KWH approved for the area. The bill was N36,969.65. Even the 960KWH represents the maximum; not the mandatory charge. The biggest building in the same area is a four-storey residential tower with 42 rooms and over 240 residents. That unit should attract the maximum 960KWH charge. No honest business person can argue that the bungalow and the biggest building should be charged for 960KWH – let alone billing one for 1144KWH of power consumed.” 

“I have been tracking the monthly bills submitted to a street in Lagos Island since that article was published; and the pattern of arbitrary and false charges remains the same. Smaller buildings are routinely charged more than far bigger buildings – if the owners or occupants of the latter had settled officials. Furthermore, there is no illegal connection unknown to DisCo officials. And, because somebody has to pay for the units, the bills are passed to somebody else.

Finally, DisCos have no interest in providing pre-paid metres. They are reluctant to supply them because it deprives them of the power to steal from innocent consumers.

Estimated bills allow the officials to scam consumers as much and as long as they want.  Again, Lagos DisCos are the absolute worst among the five I patronise.

I must have written over twelve letters to the Managing Directors, not once was objection raised. Silence means consent.“

Follow me on Facebook @ J Israel Biola.