Theft of Electricity Cables Drives SMEs to Crisis in Lagos Community

On a sunny afternoon in February, just past 5 p.m., a small fire flickered behind a restaurant owned by 55-year-old Lateefat Olofin. As she moved between tables set up outside for patrons seeking a respite from the heat indoors, her customers craved chilled drinks-like the temperature soared above 30 degrees Celsius.

Olofin shared with PREMIUM TIMES that the Ketu-Epe community in Lagos has been shrouded in darkness since September 2025, following the vandalism of high- tension cables that supplied electricity to her area and neighboring locales. To keep her business afloat, she often travels to Ikorodu or Shagamu in Ogun State to purchase ice blocks for her drinks and meats.

"Daily, we spend around N2,000 on ice blocks. I sell bush meat, and without electricity, I can't purchase meat during the day. Even though we're in Lagos, we face significant challenges," she said.

Olofin added, "Electricity bills only add to our woes. In September, I received a bill of N10,000. Since then, no accurate bills have been delivered. To receive another bill without light would be deceitful. We open from Monday to Saturday. When I need more meat, I have to travel to Ogun State for ice costing N4,000, with an additional N2,000 in bike transport costs. This is nearly a daily occurrence, and it is incredibly frustrating."

Furthermore, she uses a generator to power her shop and various appliances, which additional strains her expenses.

"Every day we spend nearly N4,000 on fuel for the generator, which lasts less than two hours. Our total daily expenses hover around N10,000—amounting to approximately N60,000 weekly. We appeal to the government for assistance. They promised to resolve this issue last year, but no action has been taken," Olofin lamented.

Women-owned small and medium enterprises (SMEs) across Ketu-Epe and Ibeju- Lekki are grappling with similar challenges following the cable theft. Many businesses have been compelled to turn to expensive alternatives.

For women like Olofin, the struggle is a constant daily battle. Their enterprises form the backbone of Nigeria's informal and microeconomic sectors, focusing on food processing, food sales, tailoring, beauty services, retail, and a growing trend towards small-scale manufacturing. However, unreliable electricity poses a significant barrier to their growth.

Many areas in Lagos, including venues in Epe, Ibeju Lekki, Ajah, and Lagos Island, have been plagued by outages, voltage issues, and high costs associated with backup power systems. Consequently, many business owners are compelled to reallocate their profits merely to sustain their electricity supply and their livelihoods.

Shop owner Tosin Sangosanya noted that the ongoing electricity shortage has severely impacted her trade. "We sell drinks and bottled water. Customers anticipate their drinks chilled, but lacking electricity compels us to buy ice blocks from Ikorodu or Shagamu. Each block costs between N2,000 and N2,500, barely lasting a single day. We mainly sell to retain our customers. Some shops have installed solar systems, but we cannot afford that."

Previously, Sangosanya's monthly electricity bill averaged around N10,000. Now, she spends over N25,000 just for ice; generators help, but they cannot suffice throughout the day, compounded by rising fuel expenses.

Another resident, Tunde Adesina, expressed his discontent with the current situation, stating, "Everything has deteriorated. Many residents are resorting to solar power or purchasing petrol—spending around N10,000 daily—just to stay afloat. We reside in Lagos State, yet the one thing we lack is electricity."

Sam Amadi, Director of the Abuja School of Social and Political Thoughts, spoke with PREMIUM TIMES in February, indicating that electricity problems stem primarily from infrastructure design flaws and network capacity inadequacies. "In areas with high population density, where facilities have not been updated, dependability suffers," he explained.

Energy costs make up about 30% of production expenses for many SMEs, with running a generator proving substantially costlier than relying on the grid. "Daily dependence on fuel erodes profit margins, making it increasingly difficult for businesses to endure," he added.

Community leaders emphasize that the issue of cable theft is reoccurring. Mutiu Olokodana, the Oluwo of Ketu-Epe, revealed that the community experienced its first incident of cable theft in early 2025. Despite previous arrests and local responses, the theft persisted, leading to extensive outages.

"After the first incident, lights were restored, but subsequent thefts plunged us back into darkness. One suspect was apprehended but was later released. People now have to purchase fuel to operate generators, making life arduous in this community," Mr. Olokodana voiced.

Concerns were raised by residents who told PREMIUM TIMES that the police had released a suspect without holding them accountable. They reported that the cables remained at the police station, with no efforts to reconnect them, despite local government representatives' visits to discuss the thefts.

Despite these issues, there's an absence of regulations or laws stipulating a timeline for distribution companies to restore electricity following cable vandalism. Olokodana shared that local officials continuously promised restoration by December 25, 2025, but nothing came to fruition.

Efforts to reach the Ikeja Electricity Distribution Company (IKEDC) for a comment were unsuccessful, as spokesman Kingsley Okotie did not respond to inquiries regarding community issues.

This recurring challenge is not limited to Ketu-Epe, with other Nigerian communities suffering a similar fate due to regulatory gaps, funding difficulties, and enforcement problems.

Charles Iwuamadi, General Manager of the Transmission Company of Nigeria (TCN) in Benin, revealed that instances of vandalism against transmission lines have surged more than 30% recently, despite various governmental efforts to combat this issue. He indicated that vandalism contributes significantly to Nigeria's frequent national grid failures and electricity interruptions.

Communities are encouraged to safeguard power infrastructure, as the 2020 World Bank Ease of Doing Business report ranked Nigeria 171 out of 190 nations regarding reliable electricity access - a persistent challenge for many Nigerians.

Shubham Chaudhuri, World Bank Country Director, noted, “Enhancing electricity access and reliability is crucial for alleviating poverty and fostering economic growth in the wake of the global COVID-19 pandemic,” reflecting the significance of this issue for Nigeria's future.

As a result, the World Bank has sanctioned $500 million to assist Nigeria in enhancing its electricity distribution sector, suggesting a focus on improving the performance of Electricity Distribution Companies (DISCOs) through extensive metering programs, a long-held demand from Nigerians. Nevertheless, as of 2026, the government's inability to resolve these concerns remains evident.

In 2024, Power Minister Adebayo Adelabu announced that Nigerians spent a staggering N16.5 trillion in 2023 on fuel, diesel, and generators, which overshadowed the N1 trillion income accrued from the formal power sector during the same period. This highlights the significant disparity between costly personal energy generation and the formal grid's revenues.

The lack of accessible electricity for SMEs significantly hampers Nigeria’s economic growth, resulting in an estimated annual loss of $29 billion—exceeding federal allocations for health and education combined. According to a 2020 PwC survey, electricity expenses are a major operational burden for numerous SMEs, with one in seven forced to cease operations due to power issues.

Although prior governments have attempted reforms, progress has stalled; the 2013 privatization effort promised enhanced efficiency, yet the system remains underfunded, leading to liquidity crises among generation firms and obstructing cash flow for gas suppliers. Though ambitious projects, such as the Siemens partnership, aim for 25,000 megawatts by 2025, structural governance issues hinder advancement.

Globally, Nigeria struggles with energy deficiencies but lags behind its counterparts. Morocco’s solar projects power over a million households, Egypt has expanded its gas capacity substantially, and Ghana has recovered from a previous energy crisis through transparent engagement and technical management. The clear lesson emerged that effective governance is vital for achieving energy stability.

The transition to renewable energy presents renewed hope, as studies indicate that solar and hybrid systems can enhance profitability and resilience, especially for SMEs. Experts advocate for the adoption of policies that incentivize clean energy systems and support women entrepreneurs, lessening the reliance on costly personal generators.

On June 28, 2025, President Bola Tinubu ratified the Electricity Amendment Bill aimed at decentralizing the sector, enabling states to generate, transmit, and distribute electricity, as well as granting licenses to private investors and facilitating mini-grids. While this law promises accelerated electrification and industrialization, financial and technical capabilities are still pressing concerns.

Communities like Ketu-Epe, bearing the brunt of prolonged darkness, encounter immediate challenges, including lost income, stunted business growth, and reduced economic opportunities.