• Thursday, May 23, 2024
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BusinessDay

Kano DisCo invests N1.2bn in power distribution boost

Future Energies Africa owns 60% stake in Kano DisCo – Company clarifies

…Targets 200% energy offtake

Kano Electricity Distribution Company (Kano DisCo) has unveiled plans to invest N1.2 billion in network expansion and improvement in power supply to the famous Dawanau International Grains Market, in Kano.

According to the statement seen by BusinessDay, the company projected a 200 percent offtake after the completion of the expansion project.

KEDCO said network expansion and power generation are some of the Company’s major plans to improve power supply in an accelerated fashion, especially in areas such as Dawanau International Grains Market, being the largest in Sub-Saharan Africa, with numerous cottage industries.

Read also: Jigawa partners Kano DisCo for stable renewable power

“The Company is prioritising the Dawanau project amongst a string of similar projects due to its current dilapidated network leaving the area underserved, thus hindering the potential of the market as a catalyst for economic growth of Kano state and the northern part of Nigeria,” the statement signed by Sani Bala Sani, head corporate communications of Kano DisCo.

Commenting on the development, Abubakar Yusuf, the company’s acting managing director and CEO, said, “We have engaged 3 reputable companies to actualise construction of 35 KM of 33kV high tension (HT) line from Bichi Transmission Substation to Dawanau market, installation of 2 Nos 500 KVA 33/-415v transformers, and low tension (LT) lines to serve the area and environs at the cost of N1.2bn.

“The project is aimed at improving the quality and efficiency of power supply to industrial and commercial clusters in the grain market, which is equally in line with our vision to enable re-industrialization and economic empowerment within our franchise states.”

Read also: 25 million Nigerians to access power on Kano Disco $200m funding

On takeover in November 2023, the company said the new core investor (Future Energies Africa) immediately embarked on network rehabilitation and expansion aimed at improving access to quality and reliable power supply for the socio-economic growth of KEDCO’s tri-state of operation.

While these initiatives will further strengthen the existing relationship among stakeholders and explore other business opportunities within the same space and beyond, the investors remain unrelenting in the same trend across the franchise area.

In his remarks, Inuwa Bala Daneji, said, “Upon completion of the project, we forecast an increase in energy offtake by 200 percent and an equivalent growth in revenue for KEDCO”.