ARID ZONE JOURNAL OF ENGINEERING, TECHNOLOGY & ENVIRONMENT
AZOJETE March 2020. Vol. 16(1):120-136

Published by the Faculty of Engineering, University of Maiduguri, Maiduguri, Nigeria.
Print ISSN: 1596-2490, Electronic ISSN: 2545-5818

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ORIGINAL RESEARCH ARTICLE

THE CHALLENGES AND PANACEAS TO POWER DISTRIBUTION LOSSES IN NIGERIA

O. O. Mohammed1*, A. O. Otuoze1, S. Salisu2, A. E. Abioye3, A. M. Usman1 and
R. A. Alao1

(1Department of Electrical and Electronics Engineering, University of Ilorin, Ilorin, Kwara State, Nigeria
2Department of Electrical Engineering, Ahmadu Bello University, Zaria, Nigeria

3Department of Electrical and Electronic Engineering, Akanu Ibiam Federal Polytechnic, Unwana, Ebonyi State, Nigeria)
*Corresponding author’s email address: reacholaabdul@gmail.com; mohammed.oo@unilorin.edu.ng

1.0 Introduction
Electric power system is one of the most important infrastructure for socio-economic
development of any nation (Salisu et al., 2019). For years, there have been historical structural
challenges affecting the overall generating capacity efficiency (Adoghe et al., 2009) resulting to
several power crisis. Large investments have been made in both generation and distribution
systems, however, remarkable improvement in the availability and quality of power delivery are
yet to be achieved. Electricity demand in Nigeria is increasing daily without a corresponding
increase in power generation or expansion of the transmission capacity to meet the increasing
demand. Most of the power distribution network are abjectly maintained and the poor state of
the electricity supply is continuously threatening the socio-economic activities of the country
(Dada, 2014). Nigeria has an inexhaustible supply of natural resources with substantial reserves
of oil and gas, and has one of the lowest net electricity generation per capita rates in the world
(Team, 2015). Several articles have been written on power generation improvements, and other
sources of inexhaustible energy generation have been proposed. However, details about the
challenges facing the distribution systems have not been efficiently presented in the literature.
Distribution subsystem is considered as the weakest part of the entire power system because

ARTICLE INFORMATION ABSTRACT

Energy losses in the distribution network and its subsystems have been
issues of great concerns in Nigeria’s power sector. For decades, several
studies have been conducted on the challenges facing the power sector
in Nigeria with most focus directed on the distribution subsystems. The
major challenge in the distribution system is the high energy losses
which are detrimental to the techno-economic benefits of the power
systems. However, details of the distribution system challenges and the
probable solutions have not been efficiently presented. In this study,
some of these challenges are presented and the potential solutions are
proposed. The features of the Nigeria distribution network, the
technical and non-technical sources of losses as well as the identified
challenges are presented before discussing the potential solutions. The
panaceas so provided were from the understanding of some published
works and other related materials as well as the in-depth understanding
of the authors. This article can serve as a guide for the utilities and
stakeholders in the power sector for efficient management operations
and improved customer service delivery.

© 2020 Faculty of Engineering, University of Maiduguri, Nigeria. All rights reserved.

Submitted 21 March, 2019
Revised 17 July, 2019
Accepted 15 August, 2019

Keywords:
Nigeria power system
distribution system
technical losses
non-technical losses.

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while the transmission losses only account for about 17%, distribution losses are approximately
50% (Bhatti et al., 2015).

In this paper, the features and challenges of distribution networks based on the Nigeria
scenarios are explored with emphasis on the technical and non-technical losses. Irregularities
being perpetrated by the distribution companies are also assessed and recommended solutions
proffered. The features and challenges of Nigeria’s distribution networks in view of some
previous studies are outlined. An overview of the distribution system’s losses is presented, and
the irregularities observed among the operators of the distribution systems are summarized.
Some of the panaceas towards efficient management of the distribution system are given and
the conclusions drawn from the study are highlighted.

2. Features and Challenges of the Distribution Network
Traditional power distribution systems are generally modeled in a radial form with the
advantage of unidirectional power flow for easy control. However, there are limitations to the
efficiency and reliability improvement in a radial distribution system (Short, 2014). The
distribution system, via the distribution substations to the consumers, was initially developed to
be relatively passive (DOE, 2015). Generally, distribution systems deliver electricity via
distribution feeders and radial lines with control equipment operated through timed set points.
This scheme is enough to provide consumers with basic service delivery at reasonable costs.
Nonetheless, it cannot cope with the current needs for greater resilience, effective power quality
control, and customers’ participation (DOE, 2015). Moreover, the integration of renewable
energy generations causes bidirectional power flow (Kim etal., 2013). The aged distribution
systems had no consideration for renewable integration when it was designed. Therefore,
connecting renewable energy generations to the distribution system may lead to various
interconnection problems including over voltage, harmonics, rise in fault currents, fault
coordination and is landing problems (Kim et al., 2013).

In most locations in Nigeria, the distribution network, the voltage profile as well as the billing
systems are very poor (Vincent and Yusuf, 2014), contributing to a great loss to the utilities. This
is due to several challenges which include; low-quality distribution lines, inadequate and weak
network coverage, overloading of transformers and inferior feeder pillars, inaccurate system of
billing, illegal practices by employees and poor customer relations, power thefts, inadequate
logistic facilities, and obsolete communication equipment, inadequate skilled staff and lack of
regular training, and inefficient maintenance schemes (Amuta et al., 2018; Otuoze et al., 2019).
Lack of proper and prompt maintenance of the existing distribution schemes is identified as the
major cause for most of the challenges. Figure 1 depicts the sample of distribution lines that are
not properly maintained. The characteristics of the current distribution systems in Nigeria are
highlighted below (Aliyu et al., 2013; Kim et al., 2013).

Distribution systems are dominated by radial network: Due to the radial structure of the system,
fault at any location in the system would disrupt the electricity supply to the entire area thereby
making the system unreliable and tedious to maintain.

Challenges in voltage regulation: The voltage of sub-transmission and distribution need to be
maintained within certain reference values. However, during the peak hours, due to the
enormous power flows via the link, remarkable voltage dip beyond the reference limits may
occur. In contrast during the off-peak hours, the shunt capacitors employed for voltage
compensation remain connected to the system and thereby causing voltage rise.

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Inadequate system facilities: As the demands on the system continue to increase, there is no
commensurable increase in the system facilities. Therefore, the distribution system becomes
heavily loaded and consequently causing tripping in the system as well as high losses and
possibly, eventual systems’ collapse.

Shortage in transformer supplies: The distribution systems in most parts of the country do not
have adequate transformers, therefore overloading the existing ones, which subsequently leads
to voltage drop, high losses and systems’ unreliability.
Improper energy accountability: This is due to huge commercial and collection losses.
Lack of proper maintenance and existence of obsolete equipment: This accounts for high
technical losses on the distribution networks.

Figure 1: Sample of a distribution line that are not properly maintained

To address some of the problems, the distribution system was privatised. In line with the
privatisation programme, the Nigerian distribution networks were unbundled into 11 regional
grids and were sold to foreign and local investors with a minor stake being maintained by the
government. These distribution companies differ in terms of network size, geographical location
and number of customers. Based on an agreement with the Bureau of Public Enterprises (BPE),
the energy capacity allocated to each of the company differs, which in reality depends on the
ability of the company to accept the capacity offered (Team, 2015) from the primarily defined
customer size, geographical location, expected load demand and other related factors.

During the privatisation of these companies, some losses were considered in the transaction,
however, after the completion of the process, the companies later realised the losses were
greater than the envisaged values. The 2014 estimated losses are depicted in Figure 2, and the
grid energy allocation percentage to the 11 distribution companies is as shown in Table 1 (Team,
2015). It can be observed from Figure 2 that the percentage of technical losses (12%) is far less
than the non-technical losses. The greatest problem facing the distribution companies is the
level of non-technical losses which include commercial losses (unbilled used energy), and
collection losses (unpaid billed energy). These losses are associated with electricity theft and
fraud, a huge amount of losses are incurred through electricity theft which is consequently
preventing further investment plans for the utilities (Otuoze et al., 2017; Sharma et al., 2016).
Unpaid billed energy, unbilled used energy, billing irregularities, defective meters, conventional
meter manipulations, corruption of the employees (misappropriation of funds, illegal
procurement, sales of distribution equipment, meter bypass and more) and other associated

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fraudulent activities (Otuoze et al., 2017). These losses have made some of the companies to
reduce the amount of energy allocated to them in order to reduce their losses as can be seen in
Table 1 (Team, 2015), the energy allocations are not proportional to the number of customers.

Figure 2: Annual estimated energy losses in 2014, due to technical, commercial and collection
losses (MWh).

Table 1: The distribution companies with their allocated grid energy in 2014.
Area Number of

customers (*1000)
Distribution
network (KM)

Allocation of grid
energy (%)

Average allocation
of grid energy (%)

Abuja 755 107,254 12 15
Benin 1,187 104,702 15 14
Eko 581 8,093 13 13
Enugu 819 25,078 9 12
Ibadan 1,750 24,355 8 10
Ikeja 1,128 12,466 10 9
Jos 466 12,227 8 8
Kaduna 459 26,653 7 7
Kano 598 21,041 6 5
Port Harcourt 557 17,989 8 5
Yola 345 6,505 4 2

It can be observed that the energy allocations are not proportional to the number of customers
as expected. This is solely due to the inability of some of the companies to accept the energy
offered to them in an attempt to minimize their losses due to estimated unbilled used energy
and unpaid billed energy. However, the major losses are due to commercial and collection
losses, attributed to the crude system of billing and vulnerability of the distribution systems to
power theft. There is a paradigm shift in most parts of the world, to the deployment of
advanced distribution systems' equipment which is robust and resilient to most of the
distribution systems’ challenges thereby making the distribution losses reside within an
acceptable limit. Most of the developing nations, especially in Sub-Saharan Africa, are still
battling with several challenges in their power sector and Nigeria is not an exception.

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Several studies have been conducted on the challenges facing power sector in Nigeria, however,
most of these articles focus on the generation-based problems. Akpojedje et al. (2016) reviewed
the challenges in the transmission system and the rural electrification schemes. The work
proposed an improvement in the transmission network and the rural electrification. Similarly,
Emodi and Yusuf (2015) studied the obstacles militating against the development of electricity
access in Nigeria while highlighting feasible solutions as Komolafe and Udofia (2020) examined
the sources of electrical losses in the Nigerian power scheme. Patrick et al. (2013) studied the
feasibility of smart grid deployment in the Nigerian power 330 KV system to reduce the high
active and reactive transmission losses. Aniefiok et al. (2013) and Vincent and Yusuf (2014) also
explored the feasibilities of smart technology deployment in the Nigeria’s power scheme with
considerations of renewable energy inclusion. However, the prerequisite for smart grid
deployment is a stable electricity supply for the effective functioning of the smart system.
Although, the authors proposed the basic requirement for the smart grid deployment, those
requirements need concerted efforts to be put in place otherwise the deployment of the smart
grid would be a mirage. Some of the challenges of smart grid deployments related to most
developing nations have been highlighted by Otuoze et al. (2017). Reliability assessment of
electric power utility was investigated by Popoola et al. (2011) using questionnaire distributed to
customers in South-west geopolitical zone of Nigeria. The results were analysed using statistical
tools to investigate the interruption costs incurred by customers. Some recommendations were
highlighted to mitigate the effects of interruption costs on customers. Osueke and Ezeh (2011)
assessed the Nigeria power sector, comparing generation and demand, energy supply
projection, energy efficiency and conservation. Some suggestions were proposed to balance the
wide gap between demand and supply which include analyses carried out with considerations
of many factors including demand factor, duration of supplies, electricity needs, development,
expansion and effective integration of alternative energy sources, smart metering to encourage
high demand response with respect to energy savings (Abam et al., 2014; Oluwasuji et al., 2020).
An overview of the current energy challenges in Nigeria and the difficulty of the issues involved
was presented by Aliyu et al. (2013). The country's generation potential as at 2010 was analysed,
and 20 years expansion plans by government were also presented. The simulation results of the
electricity generation system including the environmental impact of siting a nuclear power in
one of the potential sites were also presented and analysed. The impact of fossil fuels on the
environment was presented and other sources of energy were suggested based on the vision
2020 plans (Abam et al., 2014; Oyedepo, 2014). A study by Oseni (2011) analysed the overall
performance of the Nigeria power sector and presented some policy guidelines for achieving a
world standard power market and sustainable development. Usman et al. (2015) examined the
country’s energy sources and the power sector reform adopted by the government. The paper
outlined some recommendations based on the reform implemented by other countries with
similar resources to Nigeria which yielded remarkable results. In another study, Dada (2014)
presented the benefits and challenges of deployment of smart microgrids in Nigeria’s electricity
delivery scheme. The article gives an overview of the current state of electricity supply in the
country. It states the advantages of the deployment of smart microgrids in the country's power
supply system.

Distribution systems serve as the host for distributed generation and the microgrid. The
challenges associated with distribution systems need to be addressed for effective deployment
of smart microgrids. From the literature survey, it can be concluded that most of the existing
articles focus on the power generation sector, demand and supply gap, deployment of smart
grid systems, and renewable energy integration. However, all these aforementioned sectors

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cannot have a meaningful impact without addressing the challenges associated with distribution
systems. Therefore, this article gives details on the technical and non-technical problems
regarding distribution systems in Nigeria. It highlights problems and feasible solutions.
3. Power system distribution losses
Distribution systems represent a very important position in the power system structure as it
serves as the main point of connection among the transmission network, distributed storage,
distributed generation, the consumers and the metering points for consumption (Patrick et al.,
2013). However, the challenges of the distribution systems are majorly associated with energy
losses. Generally, total energy losses are being calculated using energy balances, the losses
equal to total energy delivered to distribution substations and feeders minus total energy
consumed (metered and billed) by customers (Khodr et al., 2002). The total losses consist of
technical losses (TL) and non-technical losses (NTL). These losses need to be estimated
separately. Conventionally, TLs are estimated based on the line parameters (Agüero, 2012)
particularly by computing the active power losses at peak load demand scenarios (using
computational techniques or existing load data), then applying a loss factor to evaluate mean
power losses and consequently multiplying the mean power losses by time (in hours) to get
monthly or annual energy losses (Agüero, 2012). The NTL are obtained by subtracting the
calculated TL from the total losses. The computational complexity of these estimations relies on
the technique employed for calculating the power losses at peak load demand and loss factors,
and the features of the distribution system's components incorporated in the analysis (Khodr et
al., 2002). Moreover, when computing loss factors, a comparative study on the entire system’s
losses is required because the influence of the NTL needs to be incorporated especially if the
latter is high. Furthermore, low-voltage secondary systems’ losses are sometimes not
incorporated in this calculation or inappropriate values are used in the calculation. This practices
lead to inaccuracies of the calculated results, especially for systems with long secondary lines
and a large number of customers (Agüero, 2012; DOE, 2015). Subject to the level of accuracy
required, the aforementioned practices may be employed in some modern systems such as
those of the North American distribution systems (Khodr et al., 2002). Similarly, detail modelling
of distribution transformers is necessary even though computational techniques are employed
for the estimation of losses at peak load, the transformer modelling must include load and no-
load losses to avoid degradation in the accuracy of losses estimation (Agüero, 2012). Figure 3
summarizes the various sources of losses associated with distribution systems. The following
subsections describe the various losses in distribution systems.

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Figure 3. Summary of the entire sources of losses in the distribution system of Nigeria

3.1 Technical losses
TLs are natural occurrence as they comprise of energy dissipation in system components such
as lines, transformers, connections, measuring devices and other associated equipment that
transport energy to and from customers (Antmann, 2009). They are also referred to as physical
losses since the energy is being transformed to heat and noise while distributing electricity. This
energy dissipation incurs costs on the customers and as well as causing carbon emission
(Quezada et al., 2006). The level of TL is associated with the physical features of distribution
network components used. They rely on the design and quality of the entire power grid, line
reactance, voltage and the transformation levels and the length of the lines used. They also
relate to the level of investment in the distribution components (there is a trade-off between
initial costs of investment and the operational costs). TL also relate to effective planning and
quality of distribution networks design (Agüero, 2012). TL can be grouped into three kinds of
losses as can be seen in Figure 3. These include variable losses (associated with load), fixed
losses (dissociated with load) and network services (uncontracted consumptions of the network
components).

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Variable losses are losses associated with heat dissipation in all conductors in the system due to
their internal resistance which causes them to dissipate heat when carrying electric current (Aten
and Ferris, 2009). Due to the variation of these losses with respect to the current flowing in the
conductors, they are termed variable losses. These losses vary in proportion to the square of the
electric current and are usually called Ohmic or copper or resistive losses. Generally, variable
losses take the larger percentage of the total TL, up to two-thirds or three-quarters of the
overall value. Basically, there are two measures to reduce these losses: either to reduce power
flows or to lower the resistance of the flowing paths (Shirmohammadi and Hong, 1989).
Reducing the network equipment utilization (upgrading the network equipment) can reduce
both current and resistance. However, upgrading network capacity requires huge investments.
Hence, there is a compromise between capital investments and costs of losses. It has been
suggested that the optimal average utilization rate on a distribution network taken into
consideration, the cost of losses in its planning and design could reduce losses to about 30%
(Aten and Ferris, 2009).

Fixed losses are losses due to energy dissipation in network equipment and components when
energized (Aten and Ferris, 2009). These losses are not variable, they are not associated with the
current flow in the system and hence, with or without power supply to the customers, these
losses are incurred once the system components are energized. They are associated with the
losses in the transformers (hysteresis and eddy current losses). Other sources of these losses are
leakage current due to poor insulations, and losses due to corona effects. Fixed losses solely
depend on the system’s voltage; they are mainly fixed since the system voltage is comparatively
stable when the system equipment is energized. Increasing the efficiency of the system
components will reduce the fixed losses.

Network services are related to uncontracted consumption i.e. the power consumed by the
measuring devices such as meters, information systems which are installed within the system.
They can be electromechanical, electronics or general ICT equipment.
Generally, technical losses depend on the network characteristics and mode of operation (Emodi
and Yusuf, 2015). These losses cannot be eliminated but can be reduced by using efficient and
proper planning and maintenance schemes.

3.2 Non-technical losses
NTL, also known as commercial and collection losses, are non-natural losses associated with the
amount of non-billed electricity and billed electricity that is not paid for (Agha and Alfaoury,
2016; Sharma et al., 2016) or even paid but not properly remitted. The non-billed electricity
occurs due to either error in the metering or billing systems or as a result of illegitimate
behaviour of customers (Agha and Alfaoury, 2016; Bandim et al., 2003). Illegitimate acts such as
energy used by fraudulent consumers can be described as institutional theft, corruption and/or
organized crime (Bandim et al., 2003). The costs associated with NTL are covered by the
participation of utilities and/or legitimate consumers paying bills (Antmann, 2009). In NTL, some
of the energy delivered via the distribution system to the consumers cannot be measured or
appropriately accounted for. Since they cannot be directly charged by the suppliers or
distribution companies, they are sometimes referred to as black losses (Agha and Alfaoury, 2016;
Antmann, 2009). NTL are predominantly associated with unknown, unassigned, and incorrect
energy flows. They constitute the amount of energy delivered but could not be accounted for. It
is however very important to note that NTL may result from each of the following scenarios:
energy accounted for but not billed, or energy billed but the bills are not paid or energy used,

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billed and paid for, but not remitted appropriately (Otuoze et al., 2019). Fraudulent consumers
are not easily determined except by electricity theft detection techniques which always come
with its underlying shortcomings. These shortcoming always arise as no known energy theft
detection technique performs 100% efficiently, hence, making it difficult to determine who and
how much of energy is fraudulently consumed (Bandim et al., 2003). Although, with the
application of artificial intelligence and machine learning using the energy consumption data,
many research outputs are yielding positive results regarding the determination of fraudulent
customers (Ahmad et al., 2018; Messinis and Hatziargyriou, 2018).

NTLs are caused by activities that are external to the power system (Chauhan, 2015). The energy
loss is not directly associated with energy transportation and dissociated with the physical-
technical features of the system network (Antmann, 2009; Bastos et al., 2009). They can be
viewed as unknown customer loads, when an unknown load is connected to the network, the
actual losses increase while the losses envisaged by the utilities remain the same. This increase
losses will appear on the utilities’ account and the costs will be distributed to the customers as
network charges (Chauhan and Rajvanshi, 2013). Several scenarios result in NTLs. All lie on the
utility for the ineffective and inefficient management operation of the network. NTLs are
generally associated with customer management process (Chauhan, 2015) and can be
categorized as follows: Network equipment challenges, Network information challenges, and
Energy data processing challenges.

NTL are often faced with various challenges which could be due to consumer behaviours, the
sophistication of the metering devices, failure of any component or connection point of the
network topologies and faults on the lines, information processing errors, estimated billings and
other ill-fated social actions aimed at evading appropriate electricity bill payments. These
challenges are discussed under network equipment, network information and information
processing in the next subsections.

3.3 Network equipment challenges
These are associated with theft and fraud, and measurement errors.
Theft and fraud: these are caused by illegitimate interference with the network equipment.
There are various techniques used to illegally connect to the network (Antmann, 2009). The
larger part of the NTLs are associated with theft and fraud (Chauhan, 2015). Theft and fraud are
the major challenges faced by the power industries, and it requires the efforts of all
stakeholders to find a lasting solution to this problem. Theft can be referred to as any illegal
connection to the use of electricity asides the points where metering systems are positioned by
the suppliers. It can occur where an illegitimate connection to the system is made or an
unauthorized reconnection after disconnection by the supplier due to high debt incurred by the
customer. It can also occur where there is an incomplete connection. Fraud can take many
shapes, ranging from manipulation of customer’s meter, so that the meter can record lower
amount of used electricity or it can also come in the form of meter bypass, where some of the
customer’s loads are connected directly without being recorded by the meter.

Challenges of measuring systems: errors from measuring devices, such as the metering system,
are also categorized under NTLs. These losses are the difference between the amount of
electricity delivered via the meter and the amount recorded by the meter or read from the
meter (Chauhan and Rajvanshi, 2013; Chauhan, 2015; Depuru et al., 2011). The causes of these
losses are as follow; uncertainty associated with the measuring system, permanent error in the
meter reading, faulty measuring system, inappropriate configuration or installation of

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measuring systems, and complete breakdown of measuring systems. All these can occur as a
result of lack of maintenance, lightning, ageing equipment or other related issue which could
cause loss of unaccounted amount of energy, thereby causing an increase in NTLs (Chauhan,
2015; Doorduin et al., 2004).

3.4 Network information challenges
In this scenario, electricity is delivered and consumed but the energy is not accurately measured
due to errors in the distribution database. These inaccuracies or errors in consumption data fall
under NTL and are as a result of the following (Agha and Alfaoury, 2016; Bastos et al., 2009);
unregistered or missing connection points, inappropriate location of connection points, and
wrong information from the measuring equipment.

3.5 Problems associated with data processing
During energy data processing for the evaluation of energy losses, inaccuracies may occur and
this is associated with the error in the evaluation of energy produced or consumed. These errors
are also incorporated in NTL and are as a result of the following (Agüero, 2012; Angelos et al.,
2011; Antmann, 2009); evaluation of the consumption that are not metered, estimation of the
calculation consumption and the readings from the meter, TL estimation, estimation of some
detected challenges, and other energy data processing. The following section presents some of
the irregularities associated with Nigerian distribution companies.

3.6 Irregularities on the part of distribution companies
The operation and maintenance of the distribution equipment are parts of the responsibilities of
the employees at the distribution offices all over the country. However, most of these
employees are not equipped with the skill to perform these jobs. They work with obsolete
logistics’ facilities, tools and safety equipment, and operation vehicles (Dada, 2014). Therefore,
customers usually sought the means of solving most of the electrical faults at their end. There is
no prior notification or warning to the customers in an event of faults or outages that occur at
the distribution level and in most cases, it takes ages before the problems are solved. There is
also lack of effective planning and management at the distribution level, no reliable real-time
data about the condition of the distribution systems, and no effective coordination and
automation controls to prevent system failures which can subsequently lead to cascading
collapse (Okafor and Ezeh, 2010). Transformers are perpetually subjected to overloading
thereby causing tripping and frequent breakdown due to the absence of coordinated control
and information exchange to register the status of all the distribution transformers in order to
take decisive measures (Oseni, 2011).

In spite of this erratic power supply, there is a continuous rise in electricity tariff. The average
electricity tariff between 2012 and 2015, for the three categories of customers (residential,
commercial and industrial), charged by Kaduna DISCO, Ikeja DISCO and Port Harcourt DISCO
are as shown in Figures 4, 5 and 6, respectively (NERC, 2016). The A and B parts of Figures 4, 5
and 6 are for fixed and energy charges, respectively. This average annual tariff increase is the
same for other DISCO across the country. The inaccuracy associated with this tariff system is a
serious challenge due to the insufficient and obsolete metering system at the customers'
premises. Additionally, the fraudulent activities of the system cannot be over emphasised, for
example, a fixed tariff is forced on customers without electricity meters, irrespective of whether
electricity is supplied or not. In most cases, those having meters are faced with challenges of
overestimated billings. Defective meter readings due to a fault, extortion from distribution

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1596-2490; e-ISSN 2545-5818, www.azojete.com.ng

Corresponding author’s e-mail address: reacholaabdul@gmail.com; mohammed.oo@unilorin.edu.ng 130

employees, illegal connections and disconnections (NEWS, 2013; Sambo et al., 2012) are
additional irregularities contributing to either the losses being incurred by the DISCO or making
some customers pay higher than their normal billings.

Figure 4: Average electricity tariff for the three categories of customers by Kaduna DISCO (a)
fixed charge and (a) energy charge.

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Figure 5: Average electricity tariff for the three categories of customers by Ikeja DISCO (A) fixed
charge and (B) energy charge.

Figure 6: Average electricity tariff for the three categories of customers by Port Harcourt DISCO
(A) fixed charge and (B) energy charge.

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Mohammed et al: The challenges and panaceas to power distribution losses in Nigeria. AZOJETE,16(1):120-136. ISSN
1596-2490; e-ISSN 2545-5818, www.azojete.com.ng

Corresponding author’s e-mail address: reacholaabdul@gmail.com; mohammed.oo@unilorin.edu.ng 132

4. Panaceas to the existing distribution systems challenges
Few articles (Bollen et al., 2008; De Martini, 2014; Hallberg, 2013; Howard, 2014; Wiedman and
Beach, 2013) have discussed the distribution system challenges and solutions. However, more
concerted efforts are required to promote distribution system innovation and planning to cope
with the "smart grid" paradigms. A planned, effective and smart distribution network is key to
cope up with the ever-increasing demand for domestic, commercial and industrial loads. The
upgrading of the existing distribution system can be achieved by adopting the following
measures.

Automation of the entire substation and distribution systems for a reduction in power losses
and efficient power delivery.
Deployment of tamper-proof smart metering systems to reduce NTL remarkably.
Analysis of the financial implications of tamper-proof metering systems should be carried out to
study the feasibility of its deployment.
Upgrading of the primary feeders from a radial to a loop configuration needs to be considered
in order to efficiently accommodate distributed generations.
Increasing the use of distributed energy resources in the distribution system.
Establishment of state of art communication framework for information interchange between
substation and central distribution management system.
Creation of information exchange between the customers and distribution system operators for
efficient operation of the distribution system.
A proper framework for interaction between customers, distribution system operators and the
market operators.
Adoption of conservative policies and tariff reduction benefits which will encourage customer
participation in demand-side management.
Distribution system interfaces directly with the public, hence, there is need to put in place
sufficient network coverage and provision of quality supply with effective marketing and
customer delivery of service.

5. Conclusion
This paper presented some of the challenges facing Nigeria’s power distribution subsector.
Detailed power distribution losses and types of losses associated with the distribution system,
technical and non-technical losses, are presented. The features of the Nigeria distribution
system are highlighted along with the associated challenges. The irregularities by the
distribution system operators are also emphasized. Finally, the paper proposed solutions to
improve the distribution system to meet up with the state-of-the-art distribution equipment
such as tamper-proof smart metering system and communication framework for effective
service delivery and efficient system operations. This paper can serve as an important guide for
the distribution system operators and power system engineers in the power distribution system
subsector. It is hoped that the country will step up and sustain efforts to transform the grid to
an intelligent grid. Further studies must carry out empirical studies involving data obtained from
the operators and consumers to help match a desired balance in the operations of the
distribution systems. Cost-benefit analysis of smart meter deployment to help in enhanced
monitoring and accountability must be carried out to properly advise the government on ways
forward.

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