The governments of Kano, Katsina, and Jigawa states are in advanced talks to establish a regional electricity market and jointly raise ₦50 billion to expand power access across the three northwestern states. The move marks one of the most ambitious subnational energy collaborations since Nigeria’s new Electricity Act empowered states to generate, transmit, and distribute electricity independently of the federal grid.
According to a statement by Saad Umar Faruk, spokesperson for Kano’s Ministry of Power and Energy, the states also plan to acquire equity stakes in Future Energies Africa (FEA), the core investor in Kano Electricity Distribution Company (KEDCO). The goal, he said, is to strengthen KEDCO’s operations, improve supply reliability, and ensure that electricity distribution better reflects the needs of local communities.
The agreement was reached during an electrification summit held in Marrakech, Morocco, where energy officials from the three states met to discuss practical strategies for improving power generation and delivery. Under the plan, the ₦50 billion fund will support investments in embedded generation, solar energy systems, grid extensions, and mini-grids, especially in underserved areas where access to electricity remains low.
Kano’s Commissioner for Power and Energy, Gaddafi Sani Shehu, said the regional collaboration would promote more effective regulation, deepen cooperation among stakeholders, and reduce losses from unmetered consumption and power theft. “The tri-state market will foster joint planning, unified regulation, and cross-border energy trade within the northwest,” he explained.
The new market framework will be governed by a joint regulatory council composed of representatives from the three states, with quarterly meetings to review progress and an annual retreat to evaluate policy outcomes and funding performance. The initiative aims to create a more reliable electricity ecosystem capable of supporting both industrial and residential users.
The three states share the same electricity distribution network through KEDCO, which was unbundled from the defunct Power Holding Company of Nigeria (PHCN) during the 2013 privatisation of the country’s power sector. However, a decade later, power supply across Kano, Katsina, and Jigawa remains unreliable. Many rural areas depend on diesel generators or solar home systems, while KEDCO struggles with liquidity constraints, low collection efficiency, and high technical losses.
By jointly taking equity stakes in Future Energies Africa, which holds the controlling interest in KEDCO, the states hope to exert more oversight and push for reforms that will improve service delivery. Analysts view the development as a logical step given the shared geography and infrastructure of the three states, which together form one of Nigeria’s largest electricity consumer blocs.
The planned ₦50 billion fund will be financed through a mix of state contributions, private-sector partnerships, and concessional loans from development finance institutions. Portions of the fund will also be dedicated to expanding off-grid and mini-grid solutions in areas that are too remote or sparsely populated for the main grid to reach.
Historically, the northwest has faced chronic electricity shortages. Kano — the region’s industrial hub — often receives less than 100 megawatts of power, far below its estimated demand of over 700 megawatts. The situation has constrained manufacturing and hindered small businesses, while rural communities continue to live in near-total darkness.
By pooling resources and aligning their policies, Kano, Katsina, and Jigawa aim to change that narrative. Officials say the tri-state electricity market will enable better coordination, reduce duplication of efforts, and attract investors who may have been reluctant to engage with fragmented state-level projects.
If successful, the initiative could serve as a model for other regional blocs seeking to improve energy access under Nigeria’s decentralised power regime. But its success will hinge on transparent management, strong political commitment, and sustained funding.
For now, the collaboration signals a shift in strategy — from depending on the federal grid to taking regional ownership of power generation and distribution — and offers renewed hope for millions of residents in the northwest still waiting for steady light.
