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| The Kano Electricity Distribution Company (KEDCO) |
The Kano Electricity Distribution Company (KEDCO) has declared plans to cut down electricity supply across Kano, Katsina, and Jigawa states.
This move is a direct consequence of a two-week court injunction secured by the Manufacturers Association of Nigeria (MAN), which has obstructed KEDCO's power procurement capabilities.
Moreover, the company has attributed the looming power cutback to the non-payment issues from MAN's clientele.
The announcement was part of a statement from Sani Bala Sani, the Head of Corporate Communications at KEDCO, which was provided to PUNCH Online on Sunday.
The statement explained that the action is essential because KEDCO purchases electricity from generators at ₦140/kWh (excluding taxes and margin), whereas MAN insists on buying the same energy at ₦77/kWh.
"MAN's directive to its members to avoid paying the tariff has left KEDCO in a position where it cannot procure electricity, prompting an immediate start to the reduction of supply in Kano, Katsina, and Jigawa," the statement read.
The statement also detailed that between April 23, 2024, and May 3, 2024, MAN's Kano Branch, along with approximately 41 of its members, sent letters to KEDCO rejecting the new tariff for Band A, with copies sent to the Nigerian Electricity Regulatory Commission.
Furthermore, the statement mentioned that despite public announcements of the April 2024 Tariff Order by NERC and statements from the Federal Government, KEDCO had informed all Maximum Demand (MD) Customers in Band A about the tariff change, which was a result of the Federal Government's subsidy reduction.
KEDCO had previously clarified that the tariff adjustment was aimed at prioritizing subsidies for ordinary citizens and lower consumption groups. The Federal Government had found the subsidy too onerous and decided to cut it from nearly N19 billion per month to about N10 billion, focusing on lower supply and income groups.
"The increase in gas prices has significantly affected electricity costs in Nigeria. KEDCO has also been working on increasing generation capacity through agreements with lower-cost suppliers and the development of renewable mini-grids," the statement added.
KEDCO emphasized that it has always given priority to industrial and public service feeders, including those used by MAN, to protect employment and public services, considering the limited energy received from the National Grid.
Despite enjoying nearly uninterrupted power since April 1st, 2024, as per the NERC Order, Band A MD Customers on 41 feeders, many of whom are MAN members, have seen MAN take KEDCO to court without prior warning to stop the new tariff's implementation.
The statement concluded with a call to the State Government and citizens to urge MAN to engage constructively with KEDCO, highlighting that KEDCO has strategies that could benefit MAN without disrupting energy provision to the public. KEDCO maintains that it cannot sell electricity at ₦77 when it costs ₦140 to purchase, and it does not agree with MAN's demands taking precedence over the needs of ordinary citizens.
