Categories: BusinessNews

KEDCO to commission ₦1.1bn power project for Africa’s largest grain market

The Kano Electricity Distribution Company (KEDCO) is set to commission a ₦1.1 billion electricity infrastructure project designed to power the Dawanau International Grain Market, Africa’s largest grain trading hub.

The landmark project, which has successfully passed testing, is poised to drastically improve electricity supply in the area, addressing longstanding power shortages and unlocking the market’s full agro-industrial potential.

Spanning 35 kilometres, the newly installed 33kV overhead line connects the Bichi Transmission Station to Dawanau Market.

It includes two substations, each fitted with 500KVA 33/.415v transformers, and a network of low-tension distribution lines.

Upon activation, the system is expected to deliver over 20 hours of electricity daily—up from a previous average of just four hours.

Funded by KEDCO’s new core investor, Future Energies Africa (FEA), in partnership with the Bureau of Public Enterprises (BPE) and the state governments of Kano, Katsina, and Jigawa, the project aims to revamp regional energy infrastructure and spur industrial growth.

During a site inspection, KEDCO’s Acting Managing Director and CEO, Abubakar Shuaibu Jimeta, highlighted the economic impact of the upgrade.

“Dawanau is critical for agricultural export and food security. By increasing daily electricity supply to over 20 hours and boosting capacity by 10MW, we aim to attract over 400 agro-processing companies while reducing their energy costs by up to 80%,” Jimeta stated.

The initiative aligns with Kano State’s market modernisation strategy, which has already attracted over ₦628 million in complementary investments from institutions like the Islamic Development Bank (IDB) and the Lives and Livelihood Fund (LLF).

These funds are being used to enhance infrastructure in areas such as waste management, security, and market facilities.

KEDCO Board Director, Alhaji Habib Ahmed Daura, commended Governor Abba Kabir Yusuf and his administration for their support.

He credited the Commissioner for Power and Renewable Energy, Dr. Gaddafi Sani Shehu, and the MD of the Kano State Rural Electricity Board, Engr. Sani Bala, for their collaborative efforts in facilitating the project.

KEDCO Chairman, Adamu Gumel, described the project as transformative, not just for the region’s economy but also for the company’s growth trajectory.

“This development addresses a major bottleneck in one of sub-Saharan Africa’s key industrial clusters,” he said.

“It will significantly improve KEDCO’s energy off-take and revenue, allowing us to reinvest in other underserved areas.”

Customers in the Dawanau cluster are expected to benefit from a more reliable power supply, reduced outages, and increased capacity to run industrial operations.

According to Gumel, this investment is part of a broader strategy by Future Energies Africa to enhance power generation and distribution across Northern Nigeria, with a focus on economically vital zones.

Located in northern Kano, Dawanau Market is a central hub for West African grain trade, facilitating the movement of millet, maize, sorghum, and cowpeas across the Sahel.

The improved power supply is expected to reduce post-harvest losses, improve storage, and support value-added processes such as milling and packaging.

Jimeta summed up the impact of the project: “This is not just infrastructure—it’s a catalyst for jobs, trade, and regional development.”

The commissioning ceremony is scheduled to take place in the coming days, marking the beginning of a new era for thousands of traders, processors, and entrepreneurs in Kano and across West Africa.

LUKMAN ABDULMALIK

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