Nigeria implements energy zones to stabilize power sector

The Nigerian federal government is implementing a strategy to create energy zones to address long-standing financial illiquidity and technical challenges within the national power sector. This initiative aims to identify and prioritize high-demand commercial and industrial hubs, such as Lagos, the Abuja-Kaduna-Kano corridor, and the Enugu-Port Harcourt axis, to provide 24-hour uninterrupted electricity.

Minister of Power Joseph Tegbe has noted that the sector's primary issue is financial, noting that a lack of liquidity affects the entire value chain, from gas debt payments to the replacement of aging transmission lines. By concentrating reliable power in productive economic zones, the government intends to unlock industrial demand and assist electricity distribution companies in overcoming losses. While the Nigerian Electricity Regulatory Commission (NERC) reports improving collection rates, challenges remain regarding illegal grid connections and non-payment by some consumers.