FG Names Six Zones to Have 24 Hour Power Supply, Targets Energy Clusters
- FG is planning Energy Zones in strategic states, cities and the FCT to strengthen supply in high-demand areas
- DisCos collected about N2.32 trillion against N3.68 trillion in electricity supplied, leaving a revenue gap of roughly N1.36 trillion
- Government also targets power-sector debts with up to N4 trillion in bonds, while ruling out immediate electricity tariff increases
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has unveiled plans to establish special Energy Zones across some of Nigeria’s biggest commercial and industrial centres, targeting more reliable electricity supply and potentially 24-hour power in high-demand locations.
The proposed initiative will initially focus on the Lagos axis, Abuja-Kaduna-Kano corridor and Enugu-Port Harcourt corridor, covering six major locations across five states and the Federal Capital Territory.
Source: Getty Images
Minister of Power Joseph Tegbe discussed the plan during a strategic meeting with the leadership of selected electricity distribution companies, with discussions focused on strengthening the distribution end of Nigeria’s electricity value chain.
Energy Zones target high-demand areas
The proposed Energy Zones are expected to concentrate investment and electricity infrastructure in areas where demand from households, businesses and industries is particularly high.
Tegbe noted that Nigeria’s electricity challenges are not limited to generation and transmission. Distribution infrastructure must also have sufficient capacity to receive available electricity and deliver it efficiently to consumers.
Under the initiative, infrastructure in Lagos, Abuja, Kaduna, Kano, Enugu and Port Harcourt would be strengthened to support growing electricity demand and improve reliability.
The government expects the zones to unlock additional commercial and industrial demand while helping electricity distribution companies improve billing, collections and overall revenue.
The meeting was attended by representatives of Abuja Electricity Distribution Company, Ikeja Electric, Eko Power Ltd, Ibadan Electricity Distribution Company and Sahara Energy Group.
The engagement is part of the government's broader effort to address problems across the power sector through a phased approach.
DisCos lose N1.36 trillion revenue opportunity
The Energy Zones proposal comes as Nigeria’s electricity distribution market continues to struggle with huge billing and revenue collection gaps.
Data from the Nigerian Electricity Regulatory Commission showed that the 11 DisCos supplied electricity valued at about N3.68 trillion in 2025, but customers were billed only N2.99 trillion.
Actual collections were even lower at approximately N2.32 trillion.
This means about N694.8 billion worth of electricity supplied was not billed, while another N669.49 billion represented bills issued but not successfully collected, according to a report by The Sun.
Combined, the difference between electricity supplied and money eventually collected stood at roughly N1.36 trillion.
The Energy Zones could help tackle some of these problems by concentrating infrastructure investment in locations with substantial demand and stronger capacity to pay for electricity.
FG moves to tackle power sector debts
The initiative forms part of wider efforts to stabilise Nigeria’s troubled electricity market.
Tegbe has also said the Federal Government has no immediate plan to raise electricity tariffs as authorities focus on improving supply, infrastructure and market discipline.
The government is separately pursuing the Presidential Power Sector Debt Reduction Programme to address accumulated debts in the electricity industry.
Source: Getty Images
Under the programme, the government plans to issue up to N4 trillion in government-backed bonds to settle legacy obligations owed to electricity generation companies and gas suppliers.
If successfully implemented, the Energy Zones could become a major test of whether targeted investment in Nigeria’s highest-demand electricity corridors can translate into more dependable power for households, factories and businesses.
FG takes final decision on electricity tariff hike
Legit.ng earlier reported that Nigeria's federal government has pushed back against widespread reports claiming it plans to raise electricity tariffs, saying there is no proposal to increase rates for consumers under any service band.
The Special Adviser to the President on Power Infrastructure in the Office of the Vice President, Sadiq Wanka, issued a clarification on Saturday, saying media coverage of his recent public remarks had misrepresented his position.
Source: Legit.ng
