Jigawa State Allocates ₦1 Billion for KEDCO Equity Investment Completion

The Jigawa State Government has approved the allocation of ₦1 billion (one billion naira) as the last tranche of its equity stake investment agreement with the Kano Electricity Distribution Company (KEDCO).

This announcement was made by the Commissioner for Environment and Climate Change, Nura Ibrahim, after the State Executive Council meeting presided over by Governor Umar Namadi on Thursday. The payment will cover the remaining balance for the 25% equity stake that the Jigawa State Government acquired in KEDCO, thereby adhering to the terms set out in the Memorandum of Understanding (MoU) established between the state and the distribution company.

Mr. Ibrahim highlighted that this investment is intended to stabilize electricity supply, enhance service delivery, and promote socio-economic development across the state. He noted that this decision is in line with Jigawa's extensive development strategies, which emphasize infrastructure improvement and economic diversification through strategic partnerships in the public and private sectors.

By acquiring this stake, the state government will actively participate in discussions regarding the regional electricity sector, ensuring that the welfare and industrial requirements of its residents are prioritized. KEDCO is tasked with electricity distribution across Kano, Katsina, and Jigawa states, regions that have historically faced challenges related to unreliable power supply, thus impeding local industrial growth.

In late 2023 and early 2024, the Jigawa State Government, under Governor Namadi's leadership, sought to transition from being just a consumer of electricity to a pertinent shareholder. The MoU enables Jigawa to influence KEDCO's decisions on prioritizing grid enhancements specifically within its territorial jurisdiction.

Owning 25% of the distribution firm allows the state to better advocate for renewable energy initiatives, like the “Jigawa State Independent Power Project,” and integrate sustainable energy sources such as solar power into KEDCO’s grid framework.

As KEDCO enhances its efficiency and infrastructure, the state anticipates earning dividends, which could be reinvested into public services, thereby serving the community more effectively.