The governors of Kano, Katsina, and Jigawa states have partnered to create Nigeria’s first regional electricity market, committing an initial N50 billion investment. This initiative aims to significantly boost power generation and increase access for millions of citizens across the Northwest region.
The Tri-State Partnership
- Investment Fund: The N50 billion will establish a tri-state electrification fund, a public-private vehicle focused on deploying renewable energy, mini-grids, and solar solutions for households and small industries.
- Equity Stake: The three states will acquire equity stakes in Future Energies Africa (FEA), the core investor in the Kano Electricity Distribution Company (Kano DisCo). This direct ownership aligns the states’ interests with the utility’s performance and service delivery.
- Regulatory Harmonisation: Building on the 2023 Electricity Act (which empowered states to manage their own power), the partnership will harmonise regulations and jointly plan infrastructure to achieve economies of scale across state lines.
Goals and Impact
The agreement, sealed at a summit in Marrakech, Morocco, is designed to transform the region’s energy landscape:
- Reduce Losses: The states will collaborate with Kano DisCo to reduce high energy losses from residential consumers, thereby enabling an improved and more reliable supply to citizens.
- Rural Focus: The first phase of the $\text{N}50$ billion fund will prioritise rural communities and major industrial hubs across the three states.
- Accountability: By taking direct ownership, the governors are betting that local participation will drive accountability, improve service delivery, and accelerate industrial competitiveness in a region with vast solar and wind energy potential.
This collaboration is viewed by analysts and the Nigerian Electricity Regulatory Commission (NERC) as a pragmatic new model for regional power markets in Nigeria, ensuring local priorities drive energy infrastructure development.
