The Federal Government of Nigeria has initiated discussions with electricity distribution companies to create dedicated Energy Zones that can deliver reliable and potentially 24-hour electricity to homes, businesses, and industries in major demand centres. The proposed Energy Zones will initially cover the Lagos axis, the Abuja-Kaduna-Kano corridor, and the Enugu-Port Harcourt corridor. This move is part of the government's efforts to tackle problems across the electricity value chain.
The Minister of Power, Joseph Tegbe, disclosed the development after holding a strategic closed-door meeting with the leadership of selected electricity distribution companies and an energy company. The meeting aimed to address the difficulties involved in moving available electricity from the transmission network to consumers. According to Tegbe, the government's concern goes beyond the amount of electricity generated in the country, as a major part of the challenge lies in the ability of distribution companies to receive available power and deliver it to homes, offices, factories, and other users.
The proposed Energy Zones are expected to strengthen the distribution side of the electricity system while creating a more direct link between available generation, transmission infrastructure, and areas with strong electricity demand. For Lagos, the plan is crucial due to the concentration of industries, businesses, and commercial activities across the state and adjoining areas. Tegbe had earlier identified the Lagos axis as one of the major corridors requiring urgent attention as the Federal Government works to improve grid stability and electricity delivery.
In August, the minister disclosed that the government was investigating electricity losses along the 132kV Ikorodu-Sagamu industrial corridor after concerns that significant amounts of power were not being properly accounted for. The investigation was linked to efforts to improve metering, billing, revenue collection, and the overall efficiency of electricity distribution along the industrial route. The Federal Government has also been looking at the wider Lagos industrial corridor as a priority area due to its heavy electricity demand.
The proposed Energy Zones are expected to complement interventions aimed at improving metering, billing, revenue collection, and the overall efficiency of electricity distribution. The government also expects the initiative to stimulate more commercial and industrial activity. Tegbe said stronger electricity distribution would help unlock demand from businesses and industries while improving the revenue and collection performance of distribution companies.
The three proposed corridors have strategic economic importance, covering one of the country's largest concentrations of industrial and commercial activity, linking the Federal Capital Territory with major northern commercial centres, and connecting important economic areas in the South-East and South-South. The government's approach is coming at a time when it is also pursuing other measures aimed at improving electricity supply, including considering the use of 21 idle dams for small-scale hydroelectric projects.
The Federal Government has not yet announced a specific date for the full commencement of the proposed Energy Zones. The latest meeting was attended by representatives of the Abuja Electricity Distribution Company, Ikeja Electric, Eko Power, Ibadan Electricity Distribution Company, and Sahara Energy Group. The government is expected to continue expanding infrastructure in areas where electricity demand is high so that available supply can keep pace with the needs of Nigeria's growing economy.
Key points
- The proposed Energy Zones will initially cover the Lagos axis, the Abuja-Kaduna-Kano corridor, and the Enugu-Port Harcourt corridor.
- The government expects the initiative to stimulate more commercial and industrial activity.
- The Federal Government is also considering the use of 21 idle dams for small-scale hydroelectric projects.
