Electricity Supply: FG Moves to Create Special Zones for 24-Hour Power, Names Cities to Benefit

Electricity Supply: FG Moves to Create Special Zones for 24-Hour Power, Names Cities to Benefit

  • The Federal Government is planning Energy Zones to provide 24-hour electricity to homes, businesses and industries in major areas
  • The proposed zones will target the Lagos axis, Abuja-Kaduna-Kano and Enugu-Port Harcourt corridors
  • The government says the plan will address distribution challenges, improve power supply and boost DisCos’ revenue and electricity collection

Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.

The Federal Government has begun discussions with electricity distribution companies (DisCos) on plans to establish dedicated Energy Zones that could provide 24-hour electricity to homes, businesses and industries in key parts of Nigeria.

The initiative is expected to focus on major economic corridors, including the Lagos axis, Abuja-Kaduna-Kano corridor and Enugu-Port Harcourt route, Vanguard reported.

FG Begins Talks With DisCos on Energy Zones for 24-Hour Electricity in Major Nigerian Cities
Electricity Supply: FG Moves to Create Special Zones for 24-Hour Power, Names Cities to Benefit
Source: UGC

The Minister of Power, Joseph Tegbe, discussed the proposal during a closed-door meeting with representatives of selected DisCos and energy companies.

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According to a statement issued by the Ministry of Power, the proposed Energy Zones are designed to tackle distribution bottlenecks and ensure that electricity generated and transmitted to the national grid reaches consumers more consistently, Vanguard reported

FG targets major business corridors

Tegbe said the country's electricity challenges go beyond generating and transmitting power, stressing that the distribution network must also have the capacity to receive and deliver available electricity to consumers.

“The constraint on the sector is not limited to generation and transmission but includes how much power is taken up and delivered at the distribution end,” the minister said.

He explained that the Energy Zones would help bridge the gap between available electricity and actual consumption while creating opportunities for businesses and industries that require more reliable power.

The government also expects the initiative to improve the revenue and electricity collection performance of DisCos by increasing the amount of power supplied to productive areas.

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The proposed zones will focus on locations where stable electricity is considered critical to manufacturing, commerce and other productive activities.

However, the ministry did not disclose when the Energy Zones would become operational, how much electricity each zone would receive or the infrastructure investments required to achieve round-the-clock supply.

The meeting was part of Tegbe's stated plan to tackle longstanding problems in Nigeria's power sector through a structured and phased approach.

Representatives of Abuja Electricity Distribution Company, Ikeja Electric, Eko Power, Ibadan Electricity Distribution Company and Sahara Energy Group attended the meeting.

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Electricity Supply: FG Moves to Create Special Zones for 24-Hour Power, Names Cities to Benefit
Source: Twitter

The Energy Zone proposal comes as Nigerians and businesses continue to face concerns over unreliable electricity supply, even when power is available for distribution.

If successfully implemented, the initiative could provide a more reliable electricity supply to some of the country's biggest commercial and industrial centres while helping DisCos improve their ability to deliver and collect payment for electricity.

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Lagos strikes power deal with 3 firms

Meanwhile, Legit.ng earlier reported that the Lagos State Government signed a Power Purchase Agreement with three firms to boost electricity supply and strengthen infrastructure.

The deal aims to increase generation capacity from about 60MW to 400MW within two to three years without additional financial strain on the state.

It will also revive dormant facilities and expand power supply to key public institutions and communities, attracting more investment into its energy sector.

Source: Legit.ng

Authors:
Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.