Kano Manufacturers Plan Shift from DisCos to NDPHC Power Supply

Manufacturers in Kano State are gearing up to terminate their reliance on electricity supply from distribution companies (DisCos) as they explore direct power agreements with the Niger Delta Power Holding Company (NDPHC). This move, which reflects a growing dissatisfaction with the prevailing electricity supply in the region, aims to boost industrial productivity and reduce operational costs caused by erratic power supply and high tariffs.

The Manufacturers Association of Nigeria (MAN) in Kano has expressed concerns over persistent electricity shortages, frequent outages, and what they describe as prohibitive billing practices by the regional DisCos. According to industry leaders, these challenges have continued to undermine industrial competitiveness and hamper economic growth in the state, which is one of Nigeria’s major manufacturing hubs. They argue that inadequate power supply has been a key driver of rising production costs, making it difficult for local firms to compete with imported goods.

Speaking on the development, the Chairman of MAN’s Kano branch emphasized that members have begun negotiations with NDPHC for a direct power purchase arrangement. He noted that the arrangement would involve connecting manufacturers directly to the national grid via NDPHC plants, bypassing traditional DisCo networks. This model is expected to guarantee a more stable power supply at competitive rates. He explained that reliable and affordable electricity is critical to sustaining jobs and expanding investments in the manufacturing sector.

Industry players believe that this strategic move aligns with the ongoing power sector reforms, which allow eligible customers to purchase electricity directly from generation companies, as stipulated by the Nigerian Electricity Regulatory Commission (NERC). Under this eligible customer framework, manufacturers and other large-scale power users are legally permitted to contract electricity directly from power generation firms without going through distribution companies. Kano manufacturers are therefore leveraging this policy to mitigate the challenges that have plagued the sector for years.

The NDPHC, established under the National Integrated Power Project (NIPP), operates several gas-powered plants across Nigeria. Officials from the company have indicated their readiness to collaborate with manufacturers to provide dedicated electricity supply to industrial clusters in Kano. They argue that such collaborations could also help improve revenue generation and reduce stranded power capacity, as many NDPHC plants currently produce power that is not fully dispatched due to transmission and distribution bottlenecks.

For Kano’s manufacturing community, the stakes are high. The state is home to numerous industries producing textiles, agro-allied products, plastics, chemicals, and building materials, among others. Power shortages have long constrained these industries, leading to reduced production capacity, layoffs, and in some cases, closures. Business leaders maintain that an alternative power arrangement is necessary to revive industrial output and support the state’s economic development.

Experts in the energy sector have welcomed the move, describing it as a significant step towards breaking the monopoly of DisCos and promoting competition in Nigeria’s electricity market. According to them, increased competition will not only improve supply reliability but also encourage DisCos to enhance their service delivery to retain large customers. They also highlighted that such initiatives could attract new investments into the power sector, as manufacturers would be more willing to expand operations when they can rely on consistent electricity supply.

However, some analysts caution that implementing the arrangement could present challenges. They point out that transmission infrastructure and regulatory approvals will be crucial to ensure seamless delivery of electricity from NDPHC plants to Kano industries. There are also concerns about potential pushback from DisCos, who risk losing their most lucrative customers. Nonetheless, the manufacturers remain optimistic that regulatory agencies like NERC will provide the necessary support to make the initiative successful.

Stakeholders also believe that the success of this project could inspire similar initiatives in other industrial regions across Nigeria. As electricity remains a major bottleneck to industrialization, replicating the Kano model nationwide could transform Nigeria’s manufacturing landscape, create more jobs, and stimulate economic growth.

The Kano State Government has also expressed support for the move, stating that any initiative that strengthens the industrial base of the state and provides relief to manufacturers is welcome. The government noted that improved electricity supply would enhance productivity, boost internally generated revenue, and position Kano as a competitive hub for trade and industry in West Africa.

If successful, this development could signal a turning point for Kano’s industrial future. With direct power from NDPHC, manufacturers hope to reduce dependence on expensive diesel generators, cut production costs, and improve competitiveness both locally and internationally. The shift underscores the urgent need for sustainable energy solutions to drive Nigeria’s economic diversification agenda.

As negotiations advance, stakeholders are optimistic that the arrangement will soon materialize, providing a lifeline to industries struggling under the current electricity regime. The outcome of this move could reshape Nigeria’s power sector dynamics and set a precedent for other states and industrial clusters to follow.