THE Kano State Government has approved plans to acquire majority shares in the Kano Electricity Distribution Company (KEDCO), targeted at improving its equity stake and control in the company.
The state government said the initiative would improve energy supply, promote industrial growth, and expand access to reliable electricity across the state.
A statement signed by the governor’s spokesperson, Sunusi Bature Tofa, on Monday, November 3, noted that the decision aimed to give the state a stronger role in electricity generation, transmission, and distribution to enhance efficiency, accountability, and service delivery in the energy sector.
It is also expected to boost economic activities, create jobs, and attract both local and foreign investments, the statement said.
In addition, the government approved the presentation and adoption of the Kano State Electricity Policy under the Ministry of Power and Renewable Energy.
The policy provides a clear roadmap for sustainable energy development, focusing on renewable power integration and improved energy efficiency across sectors.
“Governor Abba Kabir Yusuf’s administration remains committed to transforming Kano into an energy-secure and business-friendly state that fosters innovation, industrialisation, and inclusive economic growth,” the statement stated.
The ICIR reports that Kano DisCo had been making significant strides in improving electricity supply in its service areas, which include Kano, Katsina, and Jigawa states.
It would be noted that Future Energies Africa (FEA) acquired KEDCO in 2023 and has since invested ₦4 billion to acquire a 2.5 per cent stake in the company.
The investment has led to improvements in billing and collection efficiencies, significantly reducing commercial losses.
Earlier in February, The ICIR reported that the Jigawa State Government, in partnership with Future Energies Africa, increased its market share in Kano DisCo by 10 per cent from the previous seven per cent.
As part of the deal, the state government and KEDCO signed an innovative partnership to ensure stable electricity across the state.
The partnership will see KEDCO (and partners) invest in building up to 10 megawatts of solar-interconnected mini-grids in the key urban hubs of Dutse, Gumel, Hadejia, Kafin Hausa, Kazaure, and Ringim to augment power supply and ensure stable electricity across Jigawa state.
Analysts say these investments by electricity distribution companies would improve power supply, as states have been empowered by the Electricity Act,2023, to divest investments in the electricity value chain.
Notably, the Electricity Act de-monopolises electricity generation, transmission, and distribution at the national level to empower states, companies, and individuals to generate, transmit and distribute electricity, while lessening pressure on the national grid.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.