Jigawa approves ₦1bn final tranche for KEDCO equity stake

The Jigawa State Government has approved the disbursement of one billion naira (₦1,000,000,000.00) as the third and final tranche of its investment agreement with the Kano Electricity Distribution Company (KEDCO).

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The Commissioner of Environment and Climate Change, Nura Ibrahim, announced the approval following the State Executive Council meeting chaired by Governor Umar Namadi on Thursday. Mr Ibrahim announced that this payment settles the remaining balance for the 25% equity stake acquired by the Jigawa State Government in KEDCO. The transaction fulfills the terms of the Memorandum of Understanding (MoU) previously executed between the state and the distribution company.

He added that the investment aims to stabilise electricity supply, improve service delivery, and catalyse socio-economic growth throughout the state. He said the Executive Council noted that this move aligns with Jigawa’s broader development agenda, focusing on infrastructure expansion and economic diversification through strategic Public-Private Partnerships (PPP).

With this stake, the state government ensures a seat at the table in the regional power sector, prioritising the welfare and industrial needs of its citizens. KEDCO is responsible for distributing electricity across Kano, Katsina and Jigawa states. Historically, these states have struggled with inconsistent power supply, which hindered local industrialisation.

In late 2023 and early 2024, the Jigawa State Government, under Governor Namadi moved to transition from being a mere consumer to a strategic shareholder. The Memorandum of Understanding (MoU) was designed to allows Jigawa to influence how KEDCO prioritises grid upgrades specifically within Jigawa’s borders.

By owning 25% of the regional distributor, the state can better advocate for the “Jigawa State Independent Power Project” and integrate renewable energy (like solar) into the existing KEDCO grid.

As KEDCO improves its collection efficiency and infrastructure, the state stands to gain from dividends, which can be reinvested into public services.