Uche Cecil Izuora
The Nigerian government plans to establish special energy zones across strategic commercial and industrial areas to support 24-hour electricity supply in high-demand locations, an official said Wednesday.
Minister of Power Joseph Tegbe said in a statement that the move is part of the government’s commitment to build infrastructure in high-demand areas and ensure that electricity supply keeps pace with estimated demand in the growing Nigerian economy.
Citing the government’s plan, Tegbe said the energy zones could be established in Lagos, the country’s economic hub, along the Abuja-Kaduna-Kano axis in the north, and along the Enugu-Port Harcourt axis in the south.
He said the zones could help address generation and transmission constraints while also closing gaps in power delivery at the distribution end of the electricity sector.
According to Tegbe, some local electricity distribution companies would participate in the project. The proposed energy zones are expected to close major gaps, unlock commercial and industrial demand, and strengthen revenue for electricity distribution companies.
“It also advances the Renewed Hope Agenda of President Bola Tinubu, which places reliable energy at the center of economic growth, industrialization and job creation,” he added
The Government has commenced discussions with Electricity Distribution Companies (DisCos) on the creation of energy zones that will provide 24-hour electricity supply to homes, businesses, and industries in major demand centres.
Tegbe held a closed-door meeting with the management of selected DisCos on the proposed zones, according to a statement issued on Wednesday by Adeola Adelabu, his media aide.
The proposed zones are expected to cover the Lagos axis, Abuja-Kaduna-Kano corridor, and Enugu-Port Harcourt corridor.
Tegbe said the initiative would address constraints at the distribution end of the electricity value chain, particularly the ability of DisCos to take up and deliver available power to consumers.
“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.
He said the proposed energy zones would help close the distribution gap, unlock commercial and industrial demand, and improve the revenue and collection performance of the DisCos.
The minister also said the federal government would continue to expand electricity infrastructure in areas with high demand, adding that supply capacity must grow with the needs of the economy.
Meanwhile Seplat Energy Plc, says Nigeria’s proven gas reserves, put at more than 215 trillion cubic feet, can power homes or factories if the country backs them with heavy investment in infrastructure.
Seplat Chief Executive Officer, Engr. Effiong Okon, noted this while speaking at energy conference themed “Positioning Nigeria as Africa’s Global Gas Powerhouse,”.
He said the true value of the reserves can only be unlocked through sustained spending on production, processing, transportation and utilisation facilities.
Seplat CEO noted that energy poverty remains a major challenge on the continent, with an estimated 600 million people in Africa south of the Sahara still without electricity.
“Gas reserves in the ground do not power homes or factories. Gas creates value only when it is produced and reliably delivered to consumers. The task before us is to convert Nigeria’s vast gas endowment into tangible economic growth, industrial development and energy access for millions of people,” he said.