The Federal Government has begun discussions with electricity distribution companies over plans to establish Energy Zones aimed at providing stable, 24-hour electricity to homes, businesses and industries in some of Nigeria’s highest-demand areas.
The proposed initiative will initially cover the Lagos axis, the Abuja-Kaduna-Kano corridor and the Enugu-Port Harcourt corridor.
Minister of Power, Joseph Tegbe, disclosed the development after holding a strategic closed-door meeting with the leadership of selected electricity distribution companies and energy-sector operators.
According to a statement issued by the minister’s media aide, Adeola Adelabu, the proposed Energy Zones are intended to improve electricity delivery in areas with significant residential, commercial and industrial demand.
FG targets distribution challenges
Tegbe said the challenges affecting Nigeria’s electricity sector go beyond generation and transmission, pointing to limitations at the distribution end of the electricity value chain.
He explained that available electricity must be effectively received by distribution companies and delivered to consumers before additional generation can translate into improved supply for homes and businesses.
“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,” the minister said.
The proposed Energy Zones are expected to address this gap by strengthening infrastructure in areas with high electricity demand.
The government also expects the initiative to unlock additional commercial and industrial demand while improving the revenue and collection performance of distribution companies.
Tegbe said the Federal Government was committed to expanding electricity infrastructure in high-demand areas so that available supply can keep pace with the needs of Nigeria’s growing economy.
Lagos, Abuja-Kaduna-Kano and Enugu-Port Harcourt corridors
The three proposed corridors cover some of the country’s major residential, commercial and industrial centres.
The Lagos axis includes one of Nigeria’s largest concentrations of businesses and industries, while the Abuja-Kaduna-Kano corridor connects several major economic centres in the northern part of the country.
The Enugu-Port Harcourt corridor also covers important commercial and industrial locations in the South-East and South-South.
Reports on the initiative identify Lagos, Abuja, Kaduna, Kano, Enugu and Port Harcourt as the major locations expected to benefit from the proposed Energy Zone approach.
The government’s approach is to concentrate infrastructure improvements in areas where demand is already high, with the expectation that more reliable electricity will support households, businesses, manufacturing and other productive activities.
DisCos and energy companies involved
The meeting was attended by representatives of the Abuja Electricity Distribution Company, Ikeja Electric, Eko Power, Ibadan Electricity Distribution Company and Sahara Energy Group.
The engagement forms part of Tegbe’s stated commitment to adopting a disciplined and phased approach to addressing challenges across Nigeria’s electricity sector.
The minister has also linked reliable electricity supply to wider economic objectives, including industrialisation, business growth and job creation.
Revenue challenges in the distribution sector
The Energy Zones proposal comes as electricity distribution companies continue to face significant gaps between the value of electricity supplied, billed and eventually collected.
Data from the Nigerian Electricity Regulatory Commission showed that the country’s 11 DisCos supplied electricity valued at about N3.68tn in 2025. Customers were billed approximately N2.99tn, while actual collections stood at about N2.32tn.
This left a combined gap of roughly N1.36tn between the value of electricity supplied and revenue eventually collected.
About N694.8bn represented electricity that was supplied but not billed, while another N669.49bn represented billed electricity for which payment was not recovered.
The government expects the proposed Energy Zones to help improve the ability of high-demand areas to receive electricity and support stronger billing and collection performance by DisCos.
No implementation timeline yet
While the Federal Government has identified the initial corridors for the proposed Energy Zones, details about the implementation timeline, capacity targets and specific infrastructure investments have not yet been announced.
The initiative will require coordination between the Federal Government, DisCos and other electricity-sector operators to strengthen the infrastructure needed to deliver reliable supply.
The Energy Zones are therefore still at the planning and engagement stage rather than being operational 24-hour electricity zones.
For households, businesses and industries in the targeted areas, the success of the programme will depend on whether improvements in generation, transmission and distribution can work together to provide more consistent electricity.
The Federal Government has also continued broader efforts to address financial challenges in the power sector, including measures to deal with accumulated industry debts and improve the stability of the electricity market.
