The Federal Government has begun engagements with electricity distribution companies to develop proposed Energy Zones aimed at delivering 24-hour electricity to homes, businesses and industries in major demand centres. The Minister of Power, Joseph Tegbe, held a closed-door meeting with the leadership of select distribution companies on Wednesday to discuss the initiative.
The proposed zones target three corridors: the Lagos axis, Abuja-Kaduna-Kano, and Enugu-Port Harcourt. The distribution companies and energy firms represented at the meeting were Abuja Electricity Distribution Company, Ikeja Electric, Eko Power, Ibadan Electricity Distribution Company and Sahara Energy Group.
“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,” Tegbe said. The proposed Energy Zones are designed to address distribution bottlenecks and ensure that power generated and transmitted to the national grid reaches consumers more reliably in high-demand areas.
This mirrors the pattern of previous power sector initiatives that promised reliable electricity without addressing the underlying commercial and infrastructural constraints. The power sector has been privatised since 2013, but distribution companies have struggled with collection efficiency, infrastructure decay and non-cost-reflective tariffs. The Federal Government has repeatedly announced plans to deliver stable power without specifying implementation timelines or capital requirements.
The statement did not provide a timeline for implementation, the proposed capacity of the zones or the specific infrastructure investments required to deliver round-the-clock supply. The engagement forms part of Tegbe’s commitment to a phased approach to addressing the sector’s challenges. It aligns with President Bola Tinubu’s Renewed Hope Agenda, which identifies reliable electricity as a driver of industrialisation and job creation.
Winners and Losers
Winners: Distribution companies in the target corridors, which gain a framework to improve revenue and collection performance. Commercial and industrial consumers, who may benefit from more reliable supply if the zones are implemented.
Losers: Consumers outside the designated corridors, who remain excluded from the initiative. The Federal Government, which risks repeating the pattern of announcing ambitious power plans without delivering them.
Bottom Line: A 24-hour power zone is a promise. The test is whether it reaches the businesses and homes that need it. The absence of a timeline suggests the promise remains aspirational.