Kano, Katsina, Jigawa to launch N50bn tri-state electricity market
By Olakunle Oke
The governments of Kano, Katsina, and Jigawa States have announced a major regional integration effort with the impending launch of a tri-state electricity market.
This collaborative initiative is designed to significantly boost power supply, promote regional energy integration, and close the severe supply-demand gap across the sub-region.
A central pillar of the initiative is the plan to float a \mathbf{N50} billion Electrification Fund. This fund is intended to accelerate access to power through a mix of strategic projects, including embedded generation, solar home systems, grid extensions, and mini-grids.
Furthermore, the three states will pool resources to acquire significant equity holdings in Future Energies Africa (FEA), the core investor in the Kano Electricity Distribution Company (KEDCO). This joint acquisition is expected to enhance KEDCO’s strategic direction, improve distribution efficiency, and ensure more reliable power delivery to consumers.
The decision to establish the market was finalized during a high-level Electrification Summit attended by the governors of the three states.
The need for this intervention is critical as crrent estimates place the total electricity demand across the three states at approximately 700 megawatts (MW), yet the actual supply is roughly 130 MW. The new electricity market is strategically designed to help close this significant deficit and stimulate economic growth for households and industries.
Gaddafi Sani Shehu, Kano State Commissioner for Power and Renewable Energy, confirmed the collaborative commitment. “The three states will collaborate to explore areas of mutual benefit in their electricity markets, promoting partner regulation and cooperation,” Shehu stated.
He added that the N50 billion Electrification Fund will specifically focus on scaling embedded generation projects and expanding grid connections to underserved communities.
The states have also committed to working closely with KEDCO to implement strategies that will reduce power losses among both industrial and residential consumers, thereby promoting more sustainable and efficient electricity delivery.
To ensure accountability and policy alignment, representatives from the three states will hold quarterly review meetings, culminating in an annual international retreat to evaluate progress and set future policy direction.
This establishment of the Tri-State Electricity Market is viewed as a major step forward in regional energy cooperation, positioning the northern sub-region for improved living standards and accelerated economic growth. The initiative is further supported by KEDCO’s recent announcement to develop a 100-megawatt “Safe Grid” project specifically for the three states, aiming to deliver more stable electricity to key industries and infrastructure.