In a significant development that could reshape Nigeria’s industrial power landscape, the Manufacturers Association of Nigeria (MAN) Kano Branch has announced its intention to forge a direct partnership with the Niger Delta Power Holding Company Limited (NDPHC), effectively circumventing traditional utility firms in Kano State.
The breakthrough came during a high-stakes business meeting at NDPHC’s headquarters, where a 20-member delegation led by Dala Foods Managing Director Alhaji Ali Madugu presented their case for a sustainable power supply directly from the federal power generation company.
Industrial Desperation Meets Corporate Opportunity
The move underscores the deepening crisis facing Nigerian manufacturers, who have long struggled with an erratic power supply that has crippled industrial operations and threatened job security across the commercial hub of Kano State. “Access to reliable electricity is critical for reviving industries and sustaining jobs in Kano State,” Madugu emphasized during the meeting, highlighting the urgency behind this unprecedented partnership proposal.
The timing of this initiative coincides with NDPHC’s own strategic pivot. Managing Director Jennifer Adighije revealed that the company is sitting on a staggering 2,000 megawatts of stranded electricity—power that remains untapped due to what she described as “abysmally low uptake” by electricity distribution companies. The company now plans to commercialize approximately 200 megawatts of this capacity by the end of 2025.
Regulatory Framework Provides Legal Pathway
The proposed arrangement would operate within Nigeria’s Eligible Customer framework, a regulatory provision that allows large power consumers to purchase electricity directly from generation companies, bypassing the traditional distribution chain. This legal mechanism has gained traction as businesses seek more reliable alternatives to the often-unreliable state utility companies.
NDPHC’s leadership expressed strong support for the initiative, with Adighije stating the company’s commitment to “partnering with the manufacturing sector to drive industrial growth, create jobs, and enhance socio-economic development.” Executive Directors Omoregie Ogbeide-Ihama and Bello Babayo Bello provided detailed implementation roadmaps during the meeting.
Broader Implications for Nigeria’s Power Sector
This development signals a potential shift in Nigeria’s electricity market dynamics, where frustrated industrial consumers are increasingly seeking direct relationships with power generators. The move could set a precedent for similar arrangements across other industrial centers in the country, potentially undermining the traditional role of distribution companies.
For Kano State, home to numerous manufacturing enterprises, this partnership could provide the reliable power supply needed to revitalize industrial operations that have been hampered by years of inadequate electricity provision. The success of this venture could attract additional manufacturing investments to the region.
The meeting concluded with both parties expressing optimism about the partnership’s potential to unlock Kano’s industrial capabilities. However, the success of this arrangement will ultimately depend on the execution of infrastructure upgrades and the navigation of regulatory complexities in Nigeria’s evolving power sector landscape.
This development represents a pragmatic response to Nigeria’s persistent power challenges, where private sector innovation meets federal generation capacity in an effort to bypass failing distribution infrastructure.
WHAT YOU SHOULD KNOW
Kano manufacturers are bypassing unreliable state utility companies to buy electricity directly from the federal Niger Delta Power Holding Company (NDPHC), which has 2,000 megawatts of unused power capacity.
This partnership could revolutionize Nigeria’s industrial power supply by cutting out failing middleman distributors and providing manufacturers with the reliable electricity they desperately need to revive operations and preserve jobs.
The move operates under existing “Eligible Customer” regulations and could spark similar direct power deals nationwide, fundamentally reshaping how Nigeria’s industries access electricity.
