Northwest states set to raise N50bn for regional electricity market

In a bold move to improve electricity access across northern Nigeria, the governments of Kano, Katsina, and Jigawa States have entered into advanced discussions to establish a regional electricity market aimed at expanding power supply and ensuring energy stability for millions of residents.

According to a statement shared on X (formerly Twitter) by Saad Umar Faruk, Public Relations Officer of the Kano State Ministry of Power and Energy, the three states plan to raise N50 billion to accelerate access to electricity among consumers.

The initiative also includes plans for the states to acquire equity stakes in Future Energies Africa (FEA), the core investor in the Kano Electricity Distribution Company (KEDCO).

The agreement was reached during a high-level electrification summit in Marrakech, Morocco and is expected to facilitate expansion the scale of embedded generation, solar home systems, grid extension, and mini-grids.

Kano State Commissioner for Power and Renewable Energy, Gaddafi Sani Shehu, according to the statement, said the three states will collaborate to explore areas of mutual benefits in their electricity markets to promote regulation and cooperation.

Mr Shehu noted that the states will team up with KEDCO to cut losses from residential consumers, ensuring improved electricity supply to citizens.

“State representatives will convene an annual international retreat and meet quarterly to review progress, set direction, and strengthen ties for the Northwestern tri-state electricity market,” the statement said.

“This landmark agreement marks a significant step towards improving electricity access and supply in the region, promoting economic growth, and enhancing the quality of life for citizens,” it added.

The National Assembly, in 2023, passed a constitutional amendment permitting states to generate, transmit and distribute electricity in breakaway from the previous law that assigned those functions exclusively to the federal government. President Bola Tinubu approved the law in June 2024.

The Nigerian Electricity Regulatory Commission has been decentralising electricity oversight by transferring regulatory roles to various states.