Ikeja Electric demands tax details from customers

Ikeja Electric Distribution Company has given customers eight days to submit tax identification details or risk having their electricity supply disconnected, as Nigeria’s newly enacted tax legislation reshapes the country’s billing landscape.

The power distributor issued a public notice on Wednesday requiring all customers to provide at least one form of government-issued identification before February 20, citing compliance requirements under the Nigeria Tax Act (2025), which took effect on January 1.

The directive represents one of the first major implementations of the sweeping tax reform, which mandates that all invoices issued in Nigeria—including utility bills—must contain customer identification information to be considered legally valid.

Acceptable forms of identification include a Tax Identification Number, Corporate Affairs Commission registration number for businesses, or National Identification Number for individual consumers. Customers who fail to comply face the prospect of being unable to receive electricity bills and, ultimately, service disconnection.

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“In line with the provisions of the Act, any invoice issued without this information is considered invalid,” Ikeja Electric stated in its notice. “Consequently, failure to provide the required details may prevent us from generating your electricity bill and could lead to the suspension of service after the stated deadline.”

The requirement affects millions of electricity consumers across Lagos and surrounding areas served by Ikeja Electric, one of Nigeria’s largest distribution companies. The firm has set up an online submission form for customers to provide their details.

The Nigeria Tax Act (2025) forms part of broader government efforts to improve tax collection and compliance in Africa’s largest economy, where authorities have long struggled with revenue generation despite the country’s significant economic output. By mandating identification details on all invoices, regulators aim to create better tracking of economic transactions and expand the tax base.

For electricity distributors already grappling with operational challenges—including substantial revenue losses from energy theft and collection difficulties—the new requirement adds another layer of administrative complexity. However, it could potentially help utilities better identify and pursue customers with outstanding bills.

The short implementation timeline has raised questions about whether consumers, particularly in informal settlements where many lack proper documentation, will be able to comply before the deadline. Nigeria’s national identification programme, while expanding, has faced delays and accessibility challenges in recent years.

Consumer advocacy groups have yet to respond publicly to the directive, though similar documentation requirements in other sectors have previously sparked concerns about financial inclusion and access to essential services.

Ikeja Electric’s notice emphasised that the deadline applies to ensure compliance beginning with January 2026 bills, suggesting the company is working to implement the tax law’s requirements with minimal grace period.

The distributor thanked customers in advance for their “cooperation and prompt adherence to the directive,” as it navigates the intersection of tax compliance and essential service provision in Nigeria’s complex regulatory environment.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy.

He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

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