Precious Anga
Lagos — The Federal Government is planning to establish Energy Zones in Nigeria’s highest-demand areas as part of efforts to strengthen electricity distribution and deliver more reliable, 24-hour power supply to homes, businesses and industries.
Minister of Power Joseph Tegbe disclosed the plan during a strategic meeting with the management of selected electricity distribution companies, DisCos, focused on addressing challenges at the distribution end of the electricity value chain.
The proposed Energy Zones will initially cover the Lagos axis, the Abuja-Kaduna-Kano corridor and the Enugu-Port Harcourt corridor.
The government said the zones are designed to address distribution constraints in areas with strong electricity demand, allowing more available power to reach consumers while supporting growing commercial and industrial activity.
The initiative is also expected to strengthen the financial position of DisCos by improving electricity supply, billing and revenue collection in high-demand locations.
Tegbe said Nigeria’s electricity challenge extends beyond generation and transmission, noting that the distribution network must also have sufficient capacity to absorb available power and deliver it efficiently to consumers.
The meeting was attended by the leadership of Abuja Electricity Distribution Company, AEDC, Ikeja Electric, Eko Power, Ibadan Electricity Distribution Company, IBEDC and Sahara Energy Group.
The Energy Zones plan comes as the electricity distribution market continues to face significant gaps between power supplied, electricity billed and revenue collected.
According to data from the Nigerian Electricity Regulatory Commission, NERC, the 11 DisCos supplied electricity valued at ₦3.68 trillion in 2025 but billed customers ₦2.99 trillion and collected only ₦2.32 trillion.
About ₦694.8 billion of the gap represented electricity that was supplied but not billed, while another ₦669.49 billion represented electricity that was billed but for which payment was not recovered.
The difference between the value of electricity supplied and revenue collected therefore stood at about ₦1.36 trillion.
The figures highlight the commercial pressure within the distribution segment and the need to improve the ability of DisCos to deliver electricity, meter customers, raise bills and recover payments.
By concentrating infrastructure improvements in high-demand corridors, the government expects the Energy Zones to help bridge the gap between available electricity and the capacity of consumers to receive and pay for it.
The plan forms part of the Federal Government’s broader efforts to stabilise the electricity value chain while improving operational and financial discipline across the sector.
The government has also indicated that it has no immediate plan to increase electricity tariffs as the administration focuses on improving electricity supply and addressing outstanding financial obligations in the power market.
The Energy Zones initiative comes alongside the Presidential Power Sector Debt Reduction Programme, under which the Federal Government plans to issue up to ₦4 trillion in government-backed bonds to settle legacy debts owed to electricity generation companies and gas suppliers.
With the proposed zones focused on major demand centres, the government is seeking to strengthen the distribution infrastructure needed to turn available electricity into more reliable supply for households, businesses and industries.
