FG targets power distribution bottleneck with energy zones
…Lagos, Abuja-Kano, Enugu-Port Harcourt corridors to get priority

By Onu Okorie

Federal Government is moving to concentrate electricity infrastructure around Nigeria’s biggest demand centres through the creation of dedicated Energy Zones, in a strategy aimed at addressing one of the sector’s most persistent problems — the inability of distribution networks to absorb and deliver available power to consumers.
Minister of Power, Joseph Tegbe, disclosed this after a strategic meeting with the leadership of selected electricity distribution companies (DisCos), saying the proposed initiative would initially target three major electricity demand corridors.
They are the Lagos axis, Abuja-Kaduna-Kano corridor and Enugu-Port Harcourt corridor.
Rather than focusing exclusively on increasing electricity generation, the initiative seeks to ensure that additional power generated and transmitted can actually reach households, commercial users and industries in areas where demand is highest.
Tegbe said Nigeria’s electricity challenge went beyond generation and transmission, stressing that inadequate distribution capacity remained a major constraint to the effective utilisation of available power.
According to him, the proposed Energy Zones are designed to strengthen distribution infrastructure, unlock commercial and industrial electricity demand and improve the revenue position of DisCos.
He said the Federal Government was committed to expanding infrastructure in areas with strong electricity demand so that power supply could better match the requirements of a growing economy.
The strategy effectively places distribution capacity at the centre of the government’s next phase of power-sector intervention, recognising that additional generation and transmission capacity would have limited impact if electricity could not be efficiently wheeled to end users.
DisCos at centre of new strategy
The meeting involved the leadership of Abuja Electricity Distribution Company (AEDC), Ikeja Electric, Eko Power, Ibadan Electricity Distribution Company (IBEDC) and Sahara Energy Group.
Their involvement is significant because the success of the Energy Zones will depend on the ability of DisCos to absorb additional electricity, strengthen their networks and deliver supply to consumers within the targeted corridors.
The proposed model could also create stronger commercial markets for additional electricity generation by concentrating investment in areas with substantial residential, commercial and industrial demand.
For manufacturers and businesses, improved distribution capacity in the targeted zones could provide greater scope for more predictable electricity supply, while also supporting investment and expansion.
The government expects the approach to help unlock productive demand that is currently constrained by weaknesses in electricity infrastructure.
Infrastructure follows demand
The Energy Zone proposal represents a shift towards a more targeted approach to electricity infrastructure development, with investments being concentrated around economic centres rather than treating the national power market as a uniform system.
The Lagos corridor, for instance, combines large industrial, commercial and residential electricity demand, while the Abuja-Kaduna-Kano axis covers some of the country’s major administrative, commercial and industrial centres.
The Enugu-Port Harcourt corridor similarly links major commercial and industrial centres in the South-East and South-South.
By initially concentrating on the three corridors, the Federal Government is seeking to build stronger electricity markets capable of supporting increased generation and attracting further private-sector investment.
Tegbe’s engagement with the DisCos also signals an attempt to sequence interventions across the power value chain, ensuring that generation and transmission investments are matched by adequate distribution capacity.
The government views reliable electricity as critical to industrialisation, economic expansion and job creation under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
If implemented as planned, the Energy Zones could therefore become a mechanism for linking electricity infrastructure investment directly to areas where demand, commercial activity and industrial production are already concentrated.