The Federal Government is planning to establish dedicated Energy Zones in some of Nigeria’s highest electricity-demand areas as part of efforts to improve supply reliability and move towards 24-hour power availability for homes, businesses and industries.
Joseph Tegbe, Minister of Power, disclosed the plan during a strategic meeting with the leadership of selected electricity distribution companies (DisCos), where discussions focused on strengthening the distribution segment 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.
According to the government, the initiative is designed to tackle distribution constraints, unlock latent commercial and industrial electricity demand and improve the revenue and collection performance of DisCos.
Tegbe said Nigeria’s power challenges extend beyond generation and transmission to the capacity of the distribution network to absorb and deliver available electricity to consumers.
The proposed Energy Zones are therefore intended to concentrate investment and infrastructure improvements in areas with significant existing and potential electricity demand.
The government expects the approach to enable electricity supply to keep pace with economic activity while creating conditions for businesses and industries to rely more consistently on grid power.
The zones are also expected to improve the financial position of DisCos by expanding their customer base, increasing electricity consumption and strengthening revenue collection.
The meeting was attended by representatives of Abuja Electricity Distribution Company (AEDC), Ikeja Electric, Eko Power Ltd., Ibadan Electricity Distribution Company (IBEDC) and Sahara Energy Group.
The engagement is part of the ministry’s broader effort to adopt a more structured and sequenced approach to addressing challenges across Nigeria’s electricity value chain.
The Energy Zones initiative comes amid significant revenue and collection challenges in Nigeria’s electricity distribution market.
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 N2.32 trillion.
This means about N694.8 billion worth of electricity supplied to customers was not billed, while another N669.49 billion in billed electricity was not collected.
Combined, the gap between the value of electricity supplied and revenue collected stood at about N1.36 trillion.
The figures highlight the financial and infrastructure challenges confronting the distribution segment and the importance of improving both electricity delivery and payment collection.
By concentrating infrastructure and supply improvements in high-demand areas, the government hopes to create electricity markets capable of supporting increased consumption while improving DisCo revenues.
