The Federal Government has initiated discussions with electricity distribution companies (DisCos) to establish dedicated Energy Zones that could deliver 24-hour electricity to homes, businesses, and industries in key economic corridors. The proposed zones will target the Lagos axis, the Abuja-Kaduna-Kano corridor, and the Enugu-Port Harcourt route, according to a statement from the Ministry of Power.
Minister Outlines Distribution Challenge
Minister of Power, Joseph Tegbe, raised the proposal during a closed-door meeting with representatives of selected DisCos and energy companies. He emphasized that Nigeria's electricity problems extend beyond generation and transmission, noting that the distribution network must have the capacity to receive and deliver available power to consumers.
“The constraint on the sector is not limited to generation and transmission but includes how much power is taken up and delivered at the distribution end,” Tegbe said. The Energy Zones are designed to bridge the gap between available electricity and actual consumption, while also supporting businesses and industries that require more reliable power.
Focus on Productive Areas
The initiative is expected to focus on locations where stable electricity is critical to manufacturing, commerce, and other productive activities. The government also anticipates that the zones will improve DisCos' revenue and electricity collection performance by increasing the supply of power to productive areas.
However, the ministry did not disclose when the Energy Zones would become operational, the amount of electricity each zone would receive, or the infrastructure investments required to achieve round-the-clock supply. The meeting was part of Tegbe's structured and phased approach to addressing longstanding issues in Nigeria's power sector.
DisCos and Next Steps
Representatives from Abuja Electricity Distribution Company, Ikeja Electric, Eko Power, Ibadan Electricity Distribution Company, and Sahara Energy Group attended the meeting. The Energy Zone proposal comes as Nigerians and businesses continue to face unreliable electricity supply, even when power is available for distribution.
If successfully implemented, the initiative could provide more reliable electricity to some of the country's largest commercial and industrial centres while helping DisCos improve their ability to deliver and collect payment for electricity.
Separately, the Lagos State Government signed a Power Purchase Agreement with three firms to boost electricity supply and strengthen infrastructure. That deal aims to increase generation capacity from about 60MW to 400MW within two to three years, without additional financial strain on the state, and will revive dormant facilities and expand power supply to public institutions and communities.
