In a bold move that could set a new precedent for Nigeria’s industrial sector, the Manufacturers Association of Nigeria (MAN), Kano Branch, has announced its intention to bypass the Kano Electricity Distribution Company (KEDCO) and secure a direct, reliable power supply from the Niger Delta Power Holding Company (NDPHC). The decision, driven by years of crippling power shortages, represents a significant turning point in the struggle of local industries to survive.

A 20-member delegation from MAN, led by its chairman, Ali Madugu, recently paid a visit to NDPHC’s Managing Director, Jennifer Adighije, in Abuja. During the meeting, Madugu painted a grim picture of the manufacturing sector in Kano, stating that inadequate and unreliable power supply has become the single biggest obstacle to productivity and growth. “Our members have both the capacity and the willingness to procure power directly from NDPHC. Access to reliable electricity is critical for reviving industries and sustaining jobs in Kano State,” he stated.

The NDPHC, which was established to manage the power projects under the National Integrated Power Project (NIPP), welcomed the move. Its Managing Director, Jennifer Adighije, assured the manufacturers of the company’s readiness to partner with them, stating that they are prepared to sell electricity directly to the manufacturers “within the ambit of regulations and infrastructural capacity.” She also noted that NDPHC has been generating more power than the distribution companies are able to absorb from the national grid, leaving them with about 200 megawatts of “stranded” electricity that they can now commercialize through the “Eligible Customer” framework.

The “Eligible Customer” rule, a policy introduced by the Nigerian Electricity Regulatory Commission (NERC), allows large-volume electricity consumers to enter into a direct contract with a power generation company, bypassing the distribution companies. This framework is seen as a potential game-changer for industrial clusters that have long relied on expensive and environmentally damaging diesel generators to power their factories.

The potential switch by the Kano manufacturers will be a major blow to KEDCO, as industrial consumers represent a significant portion of the Discos’ revenue. While KEDCO has previously denied allegations of poor service to its industrial customers, this latest move from MAN suggests that the problem is far from resolved. The development is likely to put immense pressure on KEDCO and other Discos across the country to improve their service delivery, as they face the very real threat of losing their most profitable customers to direct suppliers.

For the manufacturers, the switch to a more reliable power source holds the promise of increased productivity, lower operating costs, and a more competitive edge. The outcome of this partnership between NDPHC and Kano’s manufacturing sector will be a critical case study for other industrial hubs in Nigeria and a major test of the effectiveness of the country’s power sector reforms.