Nigeria’s Energy Zones Could Reshape Power Supply—but Raise Equity Concerns

By Zee Dladla | 04.10.2026 | Business Last Updated On 04.10.2026

Nigeria’s Energy Zones Could Reshape Power Supply—but Raise Equity Concerns

Nigeria’s proposed energy zones for round-the-clock electricity could mark a major shift in power-sector policy, but they also raise an uncomfortable question: should households tolerate unreliable supply so manufacturers can keep executive water bottles chilled below freezing? Energy journalist Mathew Ibiyemi argues that, despite the apparent inequality, the plan may offer a practical response to years of financial strain, widespread outages and repeated collapses of the national grid.

The proposal would identify areas with concentrated commercial and industrial demand—including Lagos, the Abuja-Kaduna-Kano corridor and the Enugu-Port Harcourt axis—and direct dependable, uninterrupted electricity to them. The objective is to place the country’s strongest economic centres on a more stable footing while the wider electricity system is rebuilt.

When Joseph Tegbe became Minister of Power, he pointed to a central weakness in the sector: insufficient money moving through the electricity value chain. In his assessment, the crisis is primarily financial, although technical shortcomings also remain significant. Power producers are owed money for gas, while the transmission network requires substantial investment to replace ageing lines and equipment. Both problems limit the industry’s ability to supply homes and companies consistently.

The Federal Government’s proposed model is designed to ease distribution constraints, stimulate industrial consumption and reduce the persistent losses suffered by electricity distribution companies. Its underlying principle is that areas with stronger purchasing power and more reliable payment should help generate the cash flow needed to sustain the broader system.

Collection performance among distribution companies has been improving gradually, data from the Nigerian Electricity Regulatory Commission indicates. Yet many consumers still resist paying for electricity they use, while others obtain power through unauthorised connections. Those weaknesses continue to deprive the sector of revenue and make it harder to finance better service.

By focusing first on productive economic centres, the zones would support the parts of the economy most capable of driving industrial expansion. Reliable grid power could also replace costly diesel generation, lowering manufacturers’ operating expenses and eventually reducing the prices paid by consumers.

Designating selected industrial and commercial corridors for 24-hour electricity is intended to narrow the gap between power that can be generated and power that is actually distributed and paid for. Concentrating supply around major economic routes could give electricity companies a steadier stream of revenue and make the system more financially viable.

The policy is nevertheless a substantial gamble. If it delivers, it could help revive manufacturing, reduce business costs and demonstrate that Nigeria’s power infrastructure can provide continuous electricity in practice, rather than merely promise it. Projects such as the Agbara Independent Power Plant and the Azura Power Plant have already shown that dependable supply is achievable.

There are also examples from the Rural Electrification Agency, which has created dedicated power zones for farming communities and universities. The agency has so far installed more than 200MW of capacity across 15 universities and delivered over 1,000 mini-grid projects in more than 23 states. Recent installations include projects in Oke-Uyi, Kwara State, and Epe, Lagos State.

The government’s programme extends beyond the creation of economic zones. The Minister of Power recently led the groundbreaking ceremony for a National Control Centre in Osogbo, a facility intended to meet the electricity system’s rising and anticipated needs.

Once operational, the centre is expected to use updated computing systems, large display screens and analytical data tools to help grid operators identify emerging faults, schedule maintenance before breakdowns occur and maximise the output of existing generation plants and transmission assets. It should also strengthen the response to grid disturbances, facilitate greater integration of renewable power and improve Nigeria’s coordination with the West African Power Pool. Enhanced physical protection and cybersecurity are also planned.

If the energy-zone strategy succeeds, industrial centres may finally operate with consistent electricity. That achievement would also place a responsibility on citizens and businesses to monitor whether the promised benefits are delivered. The minister and other authorities should be held to account, with revenue from the stronger zones tracked to ensure it is reinvested in electricity infrastructure elsewhere in the country. Only then can the initiative serve as a foundation for nationwide improvement instead of becoming a lasting privilege reserved for a small number of locations.

Mathew Ibiyemi is an energy journalist based in Lagos, Nigeria.

Written by Staff Writer

Zibuyile began her media journey as a sales intern at Mediamark (Kagiso Media) before moving into digital content creation for ZAlebs.com. Over four years, she helped evolve the platform from a simple blog into one of South Africa's leading independent entertainment news sites.

Following ZAlebs' transition to Celebrity Worx in 2016, Zibuyile was promoted to Executive Editor, recognized for her sharp audience insight and ability to match editorial with branded content. Highlights of her time include a Bookmark Award nomination, judging TLC's Next Great Presenter, reporting from the MTV EMAs, and building partnerships with radio stations like YFM, Cliff Central, and Good Hope FM.

Her editorial work also expanded to include fast-growing digital verticals—such as lifestyle tech, online entertainment, and gambling-related content—tailored to evolving reader interests and brand opportunities.

Published on 04.10.2026
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