Nigeria Power Minister: EFCC to Combat Energy Theft, Vandalism

• Nigeria's Minister of Power, Joseph Tegbe, sought EFCC intervention to combat energy theft and vandalism costing the power sector billions annually.
• The Ministry of Power lacks the statutory authority to prosecute offenders, necessitating the Economic and Financial Crimes Commission's support.
• EFCC Chairman Ola Olukoyede pledged collaboration, labeling these acts as revenue fraud and economic sabotage.
• The EFCC plans to implement Fraud Risk Assessment and Control mechanisms across all power projects and will establish a team to audit them.
• The commission emphasized a proactive approach, stating it would not wait for funds to be stolen, signaling a departure from previous practices.

We must not wait till monies are stolen, particularly on sensitive projects. It is not going to be business as usual.

Nigeria's Minister of Power, Joseph Tegbe, has formally requested the intervention of the Economic and Financial Crimes Commission (EFCC) to combat widespread vandalism and energy theft, issues he asserts are costing the nation's power sector billions of naira annually. The Minister highlighted that the Ministry of Power lacks the statutory authority to prosecute offenders, necessitating the EFCC's support in investigating and bringing to justice individuals and entities engaged in economic crimes impacting the sector.

The appeal was made during a courtesy visit by a delegation from the Ministry of Power to the EFCC headquarters in Abuja on a Tuesday. During the meeting with EFCC Executive Chairman, Ola Olukoyede, Minister Tegbe specifically cited the theft of manhole covers and other valuable assets, which severely compromises power infrastructure, including transmission towers. He noted that the President has directed efforts towards public awareness and prosecution, but without the power to act directly, the Ministry must rely on agencies like the Economic and Financial Crimes Commission.

In response to the Minister's plea, EFCC Chairman Ola Olukoyede affirmed the commission's commitment to collaboration, categorizing vandalism and energy theft as forms of revenue fraud and acts of economic sabotage. Olukoyede pledged the Economic and Financial Crimes Commission's full support to the Ministry of Power, signaling a new, more aggressive approach to tackling corruption and malfeasance within the sector.

A key initiative announced by the EFCC Chairman is the introduction of Fraud Risk Assessment and Control mechanisms across all power sector projects, encompassing both existing abandoned projects and new developments. The commission plans to establish a dedicated team tasked with analyzing and auditing these projects. This proactive measure aims to identify and mitigate fraud risks before they materialize, rather than merely reacting to financial losses.

Olukoyede further assured the Ministry of the EFCC's assistance in monitoring ongoing projects, stressing the importance of preventive measures against fraud. He articulated a clear shift in strategy, stating, "We must not wait till monies are stolen, particularly on sensitive projects. It is not going to be business as usual." This statement underscores the EFCC's intent to intervene early and decisively to safeguard public funds and critical infrastructure.

The proposed collaboration between the Ministry of Power and the Economic and Financial Crimes Commission is anticipated to significantly curb activities that undermine the power sector, thereby supporting efforts to enhance electricity supply nationwide. Minister Tegbe expressed optimism that this strengthened partnership would yield tangible results, building on the EFCC's track record in investigating and prosecuting economic and financial crimes, as well as recovering illicit proceeds.

The Minister specifically lauded Olukoyede's leadership, describing his approach to combating financial crimes as both "bold and ambitious." Tegbe also acknowledged the EFCC's prior intervention in resolving a legal dispute that had stalled the 215-megawatt Kudendan Power Plant project in Kaduna State, highlighting the commission's capacity to unblock critical infrastructure development.

This joint effort signifies a concerted push to improve accountability and integrity within Nigeria's vital power infrastructure. By combining the Ministry's operational insights with the EFCC's investigative and prosecutorial powers, the initiative aims to create a more secure and efficient environment for power generation and distribution, ultimately benefiting electricity consumers across the country.

Lawyers and compliance officers advising clients in the Nigerian power sector should be aware of the imminent heightened enforcement risk from the EFCC regarding energy theft, infrastructure vandalism, and project fraud. Companies should review their internal controls and compliance frameworks, as the EFCC's commitment to proactive intervention and 'Fraud Risk Assessment and Control' signals a significant shift towards more aggressive investigation and prosecution in this sector.

Source: Original reporting via Punch Newspapers