… to launch tri-state electricity market
Residents and businesses across Nigeria’s North-West frontier stand to gain from a landmark power deal after the governors of Kano State, Katsina State and Jigawa State announced a partnership with Future Energies Africa (FEA), the core investor in Kano Electricity Distribution Company (KEDCO).
The October 16–19 summit in Marrakech, Morocco concluded that the three states will acquire equity stakes in FEA and work to launch a ₦50 billion electrification fund.
The fund will support embedded generation, solar home systems, grid extension and mini-grids across the three states.
Under the deal, the states will also explore regulatory collaboration under the Electricity Act and partner with KEDCO to reduce losses from residential consumers to improve supply.
The move is part of a broader strategic direction for the North-West tri-state power market, with the states and FEA agreeing to quarterly reviews and an annual international retreat to assess progress and strengthen ties.
If successfully implemented, the plan could raise electricity access, lower costs, improve reliability and support economic growth in a region that hosts Africa’s largest grain market and key industrial clusters.
According to a statement signed by Sani Bala Sani, Head, Corporate Communications KEDCO, the equity takeover gives the states stronger oversight and incentive alignment. The fund’s initial target of ₦50 billion signals serious intent, although execution risks remain, including regulatory delays, grid infrastructure shortcomings and project financing.
FEA, alongside KEDCO’s leadership and advisers from DLA Piper, Boston Consulting Group and BlackAion Capital, all attended the summit, underscoring the depth of planning behind the partnership.
KEDCO currently holds the distribution licence for Kano, Katsina and Jigawa states, and the new partnership aims to leverage this existing footprint while delivering cleaner and more reliable power via renewables and grid upgrades.
“The success of the fund and equity stake strategy will depend on transparent governance, timely project delivery and cost-effective loss reduction,” the statement read in part.
Read also: Nigeria launches ₦4 trillion bond to clear power sector debt, improve supply
