The Federal Government has opened discussions with electricity distribution companies as it moves to establish dedicated Energy Zones capable of delivering more reliable and potentially 24-hour electricity to homes, businesses and industries in major demand centres across Nigeria.
The proposed Energy Zones will initially cover the Lagos axis, the Abuja-Kaduna-Kano corridor and the Enugu-Port Harcourt corridor.
Politics Nigeria reports that 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 is part of the Federal Government’s latest effort to tackle problems across the electricity value chain, particularly the difficulties involved in moving available electricity from the transmission network to consumers.
A statement issued by the minister’s media aide, Adeola Adelabu, said the discussions were focused on creating areas where electricity supply could be strengthened around existing and emerging commercial and industrial demand.
The statement said, “In furtherance of the Federal Government’s commitment to deliver reliable electricity to Nigerians, the Minister of Power, Joseph Tegbe, has held a strategic closed-door meeting with the leadership of select electricity distribution companies over the proposed Energy Zones, designed to deliver stable, 24-hour power supply to homes, businesses and industries in the country’s highest-demand areas, namely Lagos axis, Abuja-Kaduna-Kano and Enugu-Port-Harcourt.
Tegbe said the government’s concern goes beyond the amount of electricity generated in the country.
According to him, a major part of the challenge lies in the ability of distribution companies to receive available power and successfully deliver it to homes, offices, factories and other users.
“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.
The proposed zones are therefore 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 very important because of 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 because of its heavy electricity demand.
In a separate development earlier this month, Tegbe said the government was conducting technical audits of electricity infrastructure along major industrial corridors as part of efforts to identify damaged and ageing equipment requiring replacement.
The proposed Energy Zones are expected to complement such interventions by concentrating infrastructure and electricity supply improvements in areas where demand is already high.
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 minister said the government would continue to expand infrastructure in areas where electricity demand is high so that available supply can keep pace with the needs of Nigeria’s growing economy.
The three proposed corridors also have strategic economic importance.
The Lagos axis covers one of the country’s largest concentrations of industrial and commercial activity.
The Abuja-Kaduna-Kano corridor links the Federal Capital Territory with major northern commercial centres, while the Enugu-Port Harcourt corridor connects important economic areas in the South-East and South-SouthThe government’s approach is coming at a time when it is also pursuing other measures aimed at improving electricity supply.
In August, Tegbe said the Federal Government was considering the use of 21 idle dams for small-scale hydroelectric projects.
He also disclosed plans to identify stranded and underutilised power assets and channel available electricity towards areas with greater demand, including Lagos, Kano and Borno.
The minister had also identified the Lagos axis, Abuja-Kaduna-Kano and Enugu-Port Harcourt as major energy corridors for grid stabilisation.
He said technical audits were being carried out to determine the condition of existing infrastructure, including transmission equipment, before damaged components are replaced.
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.
Nonetheless, the Federal Government has not yet announced a specific date for the full commencement of the proposed Energy Zones.