Nigeria Electricity Market Boosted by Tri-State Partnership

Three northern Nigerian states, Kano, Katsina, and Jigawa, have formed a partnership to create a tri-state electricity market, enhancing cooperation and regulation in the region’s energy sector. The states have also acquired equity stakes in the Kano Electricity Distribution Company (KEDCO), with Future Energies Africa as its core investor.

The partnership was announced by the Kano State Commissioner for Power and Renewable Energy, Gaddafi Shehu, following a High-Level Electrification Summit in Marrakech, Morocco, from October 16 to 19, 2025. The agreement aims to explore areas of mutual benefit in the states’ electricity markets, promoting cooperation and regulation. The acquisition of equity in KEDCO is a strategic move to improve electricity distribution in the region.

A ₦50 billion electrification fund will be established to accelerate access to electricity through embedded generation, solar home systems, grid extension, and mini-grids. The states will work with KEDCO to reduce losses from residential consumers, ensuring improved electricity supply to citizens. This initiative is expected to promote economic growth and enhance the quality of life for citizens in the region.

The development is part of a broader trend in Nigeria, where the Nigerian Electricity Regulatory Commission (NERC) has transferred electricity regulatory oversight to several states. As of July 2025, ten states had received this transfer, with Bayelsa and Nasarawa states added to the list more recently. This shift follows the signing of the Electricity Act 2023 into law by President Bola Ahmed Tinubu in June 2023.

The partnership between Kano, Katsina, and Jigawa states marks a significant step towards improving electricity access and supply in the region. Representatives of the three states will convene an annual international retreat and meet quarterly to review progress, set direction, and strengthen ties for the northwestern tri-state electricity market. This collaboration is expected to have a positive impact on the region’s economic development and the lives of its citizens.

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