Kano DisCo’s big consumer win offers lessons for peers

In the power-starved northern business hub of Kano, a bold turnaround is underway.

For years, Kano Electricity Distribution Company (KEDCO) struggled with the dual challenge of insufficient supply and disenfranchised industrial consumers who opted for expensive, self-generated electricity.

But a new strategy is changing that narrative, one anchored on performance upgrades, strategic pricing, and aggressive re-engagement with Kano’s industrial base, offering lessons to struggling peers.

Technical overhaul drives reliability

At the heart of Kano DisCo’s new strategy is a focus on technical improvements.

Exclusive data seen by BusinessDay shows that the company’s top 10 Band A feeders, those meant to receive 20+ hours of electricity daily, are delivering impressively on that promise.

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Leading the pack is the 33kV Coca Cola feeder, clocking an average of 23.3 hours of daily power supply between April and June 2025. Close behind are the 33kV Mamuda and 33kV Angels feeders, also averaging 23.1 hours.

Other high-performing feeders, including 33kV Rice Field, 33kV TIN, and 11kV NBC, are all consistently delivering more than 22 hours daily, providing the sort of power stability that is crucial for industrial and manufacturing operations.

This marked improvement in reliability is no accident. Kano DisCo says it has ramped up investment in grid optimisation and feeder rehabilitation to ensure sustained power for its most commercially viable customers, particularly those in the Band A category who pay premium tariffs.

Discounts that matter

But the real game changer may be pricing. Kano DisCo has introduced steep discounts aimed at winning back industrial power users who had largely disengaged from the public grid.

The utility is now offering a 20 percent discount to industrial customers and a 12.5 percent discount to companies under the umbrella of the Manufacturers Association of Nigeria (MAN).

This move is designed to address what has long been a sticking point in the Nigerian electricity market: cost competitiveness. Many businesses, especially manufacturers, have historically relied on diesel or gas generators to power their operations, citing unreliability and high tariffs from DisCos. Kano’s discount initiative aims to reverse that equation.

“The goal is to make our power not just stable, but more affordable than self-generation,” said a senior executive at Kano DisCo, who asked not to be named. “We’ve studied our competitors, mainly diesel and we believe we can offer a better deal both in reliability and cost.”

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Targeting right customers

The focus on Band A feeders, those with the highest uptime, ensures that the discount strategy is not wasted on areas where supply remains erratic. The Coca Cola and Mamuda feeders, for example, serve large beverage and textile factories, respectively. Similarly, the Gaskiya, Dangote, and Flour Mills feeders power major food processing plants and industrial clusters.

By pairing these feeders with the new discount packages, Kano DisCo is creating a high-impact zone of reliable, affordable electricity that can anchor industrial recovery and job creation in the region.

Early signs of success

The strategy appears to be yielding early gains. Company insiders say at least 15 formerly disengaged industrial customers have reconnected to the grid in the last quarter alone. Discussions are ongoing with dozens more, many of whom had earlier shut down grid usage for over a year due to cost and supply concerns.

One such firm is a major textile manufacturer that recently resumed partial operations on the public grid after years of relying solely on diesel generators. “They did the math,” a DisCo official said. “At N1,200 per litre of diesel and the generator running 18 hours a day, they were spending close to N40 million monthly. We cut that in half with a stable DisCo supply.”

Model for North

Kano DisCo’s experiment is also being closely watched by policymakers and stakeholders across northern Nigeria, where grid disconnection is rampant. Unlike Lagos or Abuja, where private industrial estates sometimes have bespoke power arrangements, many northern manufacturers have been left in the cold by a weak and erratic public grid.

With the Nigerian Electricity Regulatory Commission (NERC) pushing for performance-based regulation and cost-reflective tariffs, Kano’s approach could serve as a model for other DisCos looking to make industrial power viable again.

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What’s next?

To sustain the momentum, Kano DisCo says it is planning even more ambitious upgrades. According to internal documents, the company is eyeing a billion-naira investment in grid expansion projects across its core service areas—Kano, Jigawa, and Katsina, particularly around emerging industrial zones and large estates.

“Reliability attracts usage. Usage improves revenue. And improved revenue lets us invest further,” the executive said. “That’s the cycle we are building now.”

In an environment where industrial power has been more aspiration than reality, Kano DisCo’s recalibration could be the jolt northern industry needs—one grounded in stable supply, smart pricing, and a deep understanding of what keeps factories running.