The Federal Government is stepping up efforts to tackle Nigeria’s electricity challenges with plans to establish Energy Zones in high-demand areas, targeting more stable and potentially 24-hour power supply for homes, businesses and industries. The initiative is expected to focus on areas where demand for electricity is high but distribution infrastructure remains a major constraint.

Minister of Power Joseph Tegbe disclosed the plan during a strategic meeting with the leadership of selected electricity distribution companies. The proposed Energy Zones will initially cover the Lagos axis, Abuja-Kaduna-Kano corridor and Enugu-Port Harcourt corridor, with the government looking to strengthen infrastructure so available electricity can be delivered more effectively to consumers.

According to the government, the problem is not only about generating or transmitting more electricity but also about ensuring that the distribution network has enough capacity to take up and deliver available power. By concentrating investment in high-demand locations, the Energy Zones are expected to unlock more commercial and industrial activity while helping DisCos improve revenue collection and strengthen their financial position.

The plan comes as Nigeria’s electricity distribution market continues to face a major revenue gap. Data from the Nigerian Electricity Regulatory Commission (NERC) showed that the 11 DisCos supplied electricity valued at N3.68 trillion in 2025, but billed customers N2.99 trillion and collected only N2.32 trillion. This created a combined gap of about N1.36 trillion, highlighting the scale of the billing, collection and distribution challenges facing the sector.

The Energy Zones are therefore being positioned as part of the Federal Government’s wider strategy to stabilise Nigeria’s power sector and improve market discipline. The government has also said it has no immediate plan to increase electricity tariffs, while continuing efforts to address debts across the power value chain. If successfully implemented, the new zones could give businesses and industries in major economic corridors a more reliable electricity supply while creating a stronger revenue base for electricity distributors.

source: nairametrics