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Governor Namadi’s Visionary Investment in Kano DisCo Yielding Results

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<p><&excl;-- BEGIN THEIA POST SLIDER --><&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad4" id&equals;"quads-ad4" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p>&nbsp&semi;<&sol;p><div class&equals;"ZyLnzwxV" style&equals;"clear&colon;both&semi;float&colon;left&semi;width&colon;100&percnt;&semi;margin&colon;0 0 20px 0&semi;"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js"><&sol;script> &NewLine;<&excl;-- TV --> &NewLine;<ins class&equals;"adsbygoogle" &NewLine; style&equals;"display&colon;block" &NewLine; data-ad-client&equals;"ca-pub-4403533287178375" &NewLine; data-ad-slot&equals;"4399361195" &NewLine; data-ad-format&equals;"auto" &NewLine; data-full-width-responsive&equals;"true"><&sol;ins> &NewLine;<script> &NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi; &NewLine;<&sol;script><&sol;div>&NewLine;<p>When the Jigawa State Government announced in January 2024 that it would invest ₦4 billion into Future Energies Africa &lpar;FEA&rpar; to acquire a 2&period;5 percent stake in the Kano Electricity Distribution Company &lpar;KEDCO&rpar;&comma; many Nigerians were skeptical&period;<&sol;p><div class&equals;"Z7JTwS7D" style&equals;"clear&colon;both&semi;float&colon;left&semi;width&colon;100&percnt;&semi;margin&colon;0 0 20px 0&semi;"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js"><&sol;script> &NewLine;<&excl;-- TV --> &NewLine;<ins class&equals;"adsbygoogle" &NewLine; style&equals;"display&colon;block" &NewLine; data-ad-client&equals;"ca-pub-4403533287178375" &NewLine; data-ad-slot&equals;"4399361195" &NewLine; data-ad-format&equals;"auto" &NewLine; data-full-width-responsive&equals;"true"><&sol;ins> &NewLine;<script> &NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi; &NewLine;<&sol;script><&sol;div>&NewLine;<p>The move broke from the traditional playbook of state governments&comma; which have long limited their involvement in the power sector to donations of transformers and short-term palliatives&period; But 18 months later&comma; Governor Umar Namadi’s bet is showing clear signs of paying off&comma; both in returns and results&period;<&sol;p>&NewLine;<p>On July 7&comma; 2025&comma; the State Executive Council approved the second tranche payment of ₦1 billion to FEA&comma; reinforcing Jigawa’s long-term commitment to the partnership&period; The investment&comma; the first of its kind by any Nigerian state since the 2013 power sector privatisation&comma; is already producing tangible outcomes in terms of electricity access&comma; infrastructure upgrades&comma; and fiscal returns&period;<&sol;p>&NewLine;<p>A Strategic&comma; Unorthodox Investment&colon;<&sol;p><div class&equals;"e9dDTBtb" style&equals;"clear&colon;both&semi;float&colon;left&semi;width&colon;100&percnt;&semi;margin&colon;0 0 20px 0&semi;"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js"><&sol;script> &NewLine;<ins class&equals;"adsbygoogle" &NewLine; style&equals;"display&colon;block&semi; text-align&colon;center&semi;" &NewLine; data-ad-layout&equals;"in-article" &NewLine; data-ad-format&equals;"fluid" &NewLine; data-ad-client&equals;"ca-pub-4403533287178375" &NewLine; data-ad-slot&equals;"6550225277"><&sol;ins> &NewLine;<script> &NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi; &NewLine;<&sol;script><&sol;div>&NewLine;<p>The context behind Jigawa’s bold move is compelling&period; FEA had just acquired KEDCO’s majority shareholding from Fidelity Bank after the latter placed the electricity distributor in receivership due to poor performance by the previous core investors&period; The opportunity was ripe for a reset&comma; and Namadi seized it&comma; not just to secure power supply improvements but to ensure Jigawa had a financial stake in the success of the region’s power distribution&period;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p>Crucially&comma; the investment deal did more than buy equity&period; It required FEA to commit to matching&comma; and even exceeding&comma; Jigawa’s ₦4 billion investment with infrastructure developments targeted specifically at the state&period; Sources in the State House say Namadi was adamant that the funds should yield measurable returns&comma; not just political goodwill&period;<&sol;p>&NewLine;<p>Performance rebound &&num;8211&semi; KEDCO Emerges as Leader&colon;<&sol;p>&NewLine;<p>KEDCO&comma; which previously lagged behind its peers in operational and financial performance&comma; has undergone a dramatic transformation under FEA’s stewardship&period; When FEA took over&comma; the company’s market remittance rate was a dismal 59 percent&period; Today&comma; according to the Nigerian Electricity Regulatory Commission &lpar;NERC&rpar;’s Q1 2025 performance report&comma; KEDCO is the best-performing DISCO in Northern Nigeria&comma; with a remittance performance above 100 percent&period;<&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p>The turnaround is credited to a new governance structure led by the FEA-appointed board&comma; working closely with the Bureau of Public Enterprises and state governments in the KEDCO franchise area — namely Kano&comma; Katsina&comma; and Jigawa&period; Improvements in billing and collection efficiencies have followed&comma; significantly reducing commercial losses&period;<&sol;p>&NewLine;<p>Powering Jigawa &&num;8211&semi; From Urban Hubs to Rural Grids&colon;<&sol;p>&NewLine;<p>Even more remarkable are the on-ground infrastructure developments now reshaping Jigawa’s power landscape&period; FEA’s infrastructure commitments include up to 10MW of interconnected solar mini-grids in key cities&comma; including Dutse&comma; Gumel&comma; Hadejia&comma; Kafin Hausa&comma; Kazaure&comma; and Ringim&period;<&sol;p>&NewLine;<p>These projects are being implemented through FEA’s renewable energy subsidiary&comma; Bagaja Renewables&comma; which previously constructed Nigeria’s largest interconnected mini-grid in Zawaciki&comma; Kano&period; The flagship 500kW mini-grid in Kafin Hausa is nearing 95&percnt; completion&comma; built at an estimated cost of ₦950 million&period; Additionally&comma; the once-damaged second substation in Dutse has been fully repaired and brought back online&comma; restoring redundancy and minimizing blackout risk in the capital — a project that cost nearly ₦200 million&period;<&sol;p>&NewLine;<p>According to Sani Bala Sani&comma; spokesperson for KEDCO&comma; the next wave of mini-grids will focus on Hadejia and the Maigatari Free Trade Zone in Gumel&period; &OpenCurlyDoubleQuote;We estimate to spend an incremental &dollar;3 million on these projects&comma;” Bala said&period; &OpenCurlyDoubleQuote;Our investors are bullish about the sector&comma; and we’re actively engaging the Jigawa State Government on additional projects — including one to replace the Gagarawa-Taura-Ringim line&comma; now under federal supervision&period;”<&sol;p>&NewLine;<p>In a separate milestone&comma; FEA recently completed a 39-kilometre distribution line delivering Band A electricity supply to the Dawanau International Grain Market&comma; a major agro-trade hub&period; This line is expected to boost industrial activity in the region and aligns with Jigawa’s larger agro-industrial ambitions&period;<&sol;p>&NewLine;<p>A Model for Energy Reform&colon;<&sol;p>&NewLine;<p>Governor Namadi’s &OpenCurlyDoubleQuote;Agenda for Greater Jigawa” is increasingly being recognized as a template for pragmatic and forward-thinking energy policy at the subnational level&period; By choosing to invest strategically&comma; rather than merely spending&comma; Jigawa is positioning itself as a pioneer in driving inclusive electrification and sustainable industrial growth&period;<&sol;p>&NewLine;<p>The governor’s approach also breaks with the traditional donor-recipient dynamic that has long defined state-DISCO relationships in Nigeria&period; Rather than providing infrastructure on behalf of the utility&comma; Jigawa is shaping utility investment priorities through an ownership lens&comma; and the results are speaking for themselves&period;<&sol;p>&NewLine;<p>The Road Ahead&colon;<&sol;p>&NewLine;<p>While the full dividends of Jigawa’s investment in KEDCO and FEA are yet to be realised&comma; early indicators suggest a partnership built on accountability&comma; innovation&comma; and mutual benefit&period; The alignment of public capital with private sector efficiency appears to be catalyzing a virtuous cycle of growth&period;<&sol;p>&NewLine;<p>Challenges remain&comma; especially as the federal government continues to recalibrate its role in power sector development&period; However&comma; Jigawa’s proactive engagement and insistence on a structured&comma; ROI-driven model have provided the state with both leverage and learning&period;<&sol;p>&NewLine;<p>As Nigeria continues to grapple with widespread electricity shortfalls&comma; Jigawa’s success offers a compelling case study and a challenge to other states to rethink their approach to power sector participation&period; Governor Namadi’s gamble is not only yielding returns&semi; it is changing the conversation on how to build a reliable&comma; sustainable energy future in Nigeria&period;<&sol;p>&NewLine;<p>Signed&colon;<br &sol;>&NewLine;Sani Bala Sani<br &sol;>&NewLine;22&sol;07&sol;2025<&sol;p>&NewLine;<p><&excl;-- END THEIA POST SLIDER -->&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad4" id&equals;"quads-ad4" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<&sol;p>&NewLine;<script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js"><&sol;script> &NewLine;<ins class&equals;"adsbygoogle" &NewLine; style&equals;"display&colon;block" &NewLine; data-ad-format&equals;"autorelaxed" &NewLine; data-ad-client&equals;"ca-pub-4403533287178375" &NewLine; data-ad-slot&equals;"1004305389"><&sol;ins> &NewLine;<script> &NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi; &NewLine;<&sol;script>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad5" id&equals;"quads-ad5" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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