Nigeria: Kano, Katsina, And Jigawa States To Partner On Tri-State Electricity Market, Acquire Equity Stake In Future Energies Africa

The Executive Governors of three states in the Federal Republic of Nigeria — Kano, Katsina, and Jigawa — have met with Future Energies Africa (the core investor in the Kano Electricity Distribution Company – KEDCO) in Marrakech, Morocco, for a High-Level Electrification Summit/Meeting.

The participating Governors were Mal. Abba Kabir Yusuf (Kano State), Mal. Dikko Radda (Katsina State), and Mal. Umar Namadi (Jigawa State).

Others in attendance included the Speakers of the Katsina and Jigawa State Houses of Assembly, Rt. Hon. Nasir Yahaya Saif and Rt. Hon. Haruna Aliyu Dangyatin; the Commissioners responsible for Power in Kano and Jigawa States, Dr. Gaddafi Sani Shehu and Dr. Surajo Alhaji Musa; the Special Adviser to the Katsina State Governor on Power, Dr. Hafiz Ibrahim Ahmed; and the Attorney General of Jigawa State, Hon. Bello Fanini Abubakar.

Commissioner Dafe C. Akpeneye from the Nigerian Electricity Regulatory Commission (NERC) also participated in the session.

The hosts of the event, Future Energies Africa, were led by the company’s Chairman, Alh. Najib J.A. Koguna, alongside Ahmad Rufai Zakari, OON; Alh. Habib Daura Ahmed; and Engr. Yusuf Usman Yahaya. The Chairman of KEDCO, Alh. Adamu Ibrahim Gumel, and the Managing Director, Dr. Abubakar Jimeta, were also present. Experts from DLA Piper, the Boston Consulting Group, and BlackAion Capital participated in the discussions.

Key outcomes of the Summit and Meeting included the following:

1. Equity Participation: Kano and Katsina States agreed to join Jigawa State in taking equity stakes in Future Energies Africa to strengthen KEDCO’s strategic direction.

2. Electrification Fund: The three states will partner with Future Energies Africa to establish a first-of-its-kind electrification fund with an initial target capitalization of ₦50 billion, aimed at accelerating electricity access and supply across the tri-state area through embedded generation, renewables, solar home systems, grid extensions, and mini-grids.

3. Regulatory Collaboration: The states will collaborate under the provisions of the Electricity Act to explore mutually beneficial regulatory partnerships within the tri-state electricity market.

4. Loss Reduction: The states will work with KEDCO to reduce technical and commercial losses, particularly from residential consumers, to improve electricity supply to citizens.

5. Institutional Coordination: Future Energies Africa and state representatives will convene an annual international retreat and hold quarterly (or as-needed) meetings to review progress, set strategic direction, and strengthen the North-Western Tri-State Electricity Market framework.

Source: https://energynewsafrica.com