FG Plans 24-Hour Power Zones in Lagos, Abuja, Kano, Five Other Locations

The Federal Government has announced plans to establish special Energy Zones in some of Nigeria’s major commercial and industrial centres as part of efforts to provide more reliable, potentially round-the-clock electricity to homes, businesses and industries. The proposed initiative will initially focus on the Lagos axis, the Abuja-Kaduna-Kano corridor and the Enugu-Port Harcourt corridor, according to the Minister of Power, Joseph Tegbe. The plan is designed to concentrate electricity infrastructure and operational improvements in areas with high demand, while addressing constraints at the distribution end of the power value chain. Tegbe disclosed the initiative during a strategic meeting with the leadership of selected electricity distribution companies and energy-sector operators. Representatives of Abuja Electricity Distribution Company, Ikeja Electric, Eko Power Limited, Ibadan Electricity Distribution Company and Sahara Energy Group participated in the discussions. Six locations identified for the Energy Zones Although the government has described the initiative in terms of three major corridors, the proposed zones cover six key locations: Lagos, Abuja, Kaduna, Kano, Enugu and Port Harcourt. The Federal Government wants to strengthen electricity infrastructure in these areas so that supply can better match growing demand from households, commercial establishments and industries. The initiative reflects a shift towards targeting areas where electricity demand is already concentrated and where improved supply could support greater economic activity. Tegbe said the challenges affecting Nigeria’s electricity sector go beyond generation and transmission. According to him, the system must also have sufficient distribution capacity to receive available electricity and deliver it effectively to consumers. The proposed Energy Zones are therefore expected to improve the connection between available electricity and end users. Government targets businesses and industries The plan is also intended to encourage additional commercial and industrial electricity consumption. Government officials expect stronger electricity infrastructure in high-demand areas to allow businesses and industries to rely more on grid electricity while improving the financial performance of distribution companies. Improved supply and collection could also help DisCos increase their revenues, which have been affected by billing gaps, poor collections and other challenges across the electricity market. The initiative comes as the government continues to work on broader reforms aimed at stabilising the power sector. Recent data cited in reports based on Nigerian Electricity Regulatory Commission figures showed that Nigeria’s 11 DisCos supplied electricity valued at about N3.68tn in 2025. Customers were billed approximately N2.99tn, while actual collections stood at about N2.32tn. The difference between electricity supplied and money eventually collected amounted to roughly N1.36tn. The figures highlight one of the financial challenges confronting the distribution segment of the electricity market. Distribution remains a major challenge Nigeria’s electricity problems have historically been associated with insufficient generation, transmission constraints and distribution limitations. The government’s latest approach places significant emphasis on the ability of the distribution network to absorb and deliver whatever electricity is available. This is important because increased generation alone does not automatically translate into reliable electricity for consumers. The Nigerian Independent System Operator has previously explained that the availability of generation does not, by itself, guarantee that electricity can be delivered to a particular load centre. Transmission capacity and the configuration of the network also determine how much electricity can safely reach different areas. The proposed Energy Zones are intended to address part of this problem by concentrating investment and infrastructure improvements around locations with substantial electricity demand. Plan comes amid wider power-sector reforms The Energy Zones proposal is part of a broader programme of reforms being pursued by the Federal Government. Earlier in September, Tegbe said the government would focus on stabilising the Lagos, Enugu-Port Harcourt and Abuja-Kaduna-Kano transmission corridors while beginning work towards a Transmission Super Grid. He also said technical audits had commenced along the Lagos and Abuja corridors. The minister disclosed that about 350,000 electricity meters had been installed during his first 100 days in office, bringing cumulative installations to more than one million as of August 2026. He also said the government had raised an estimated N1.23tn towards addressing part of the sector’s N3.3tn debt backlog. The government has also said it has no immediate plan to increase electricity tariffs, saying its focus is on improving supply and strengthening the physical and financial foundations of the sector. What the 24-hour power plan means The proposed Energy Zones do not mean that Lagos, Abuja, Kano and the other identified locations have already been placed on guaranteed 24-hour electricity. Rather, the Federal Government is proposing targeted infrastructure and distribution improvements intended to make stable, round-the-clock supply possible in high-demand areas. The success of the plan will depend on improvements across the electricity value chain, including generation availability, transmission capacity, distribution infrastructure, metering, billing and revenue collection. For consumers and businesses in the targeted areas, the immediate significance is therefore the government’s decision to concentrate resources on specific high-demand corridors rather than attempt to implement the same intervention uniformly across the entire country. If implemented successfully, the Energy Zones could provide a framework for improving electricity reliability in Nigeria’s major economic centres while creating conditions for increased commercial and industrial activity. For now, however, the initiative remains a government plan, with the infrastructure and operational work still required before the proposed 24-hour supply can become a sustained reality.