A BusinessDay analysis of Kano Electricity Distribution Company (Kano DisCo) 2024 performance update has shed light on the external shocks and progress made under its new ownership.
Acquired with systemic issues, Kano DisCo has embarked on a turnaround journey, achieving notable improvements while grappling with external shocks.
Here are five key takeaways from its 2024 performance:
Systemic challenges persist but progress is evident
Kano DisCo inherited severe operational inefficiencies, including the lowest metering coverage (24%) and poor staff productivity (15% revenue contribution per employee) among all DisCos in Nigeria.
Despite these hurdles, the company made strides in 2024: Billing Efficiency (BE) rose from 71 percent to 78 percent, driven by CAPEX projects like smart meter deployments while Market Remittance Rate (MRR) improved from 59 percent to 75 percent, reflecting better financial management.
However, Collection Efficiency (CE) dropped to 63 percent (from 66%) due to higher billing volumes and external disruptions.
The data underscores KEDCO’s potential, but systemic reforms—such as customer enumeration and metering—remain critical to sustaining progress.
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Force majeure events severely impacted collections
Two major crises disrupted KEDCO’s operations in 2024:
- MAN Lawsuit: The Manufacturers Association of Nigeria (MAN) withheld payments for two months after challenging Band A tariff increases, slashing Q2 collections. KEDCO is still pursuing arrears from this period.
- Transmission Line Vandalism: The 330kV Shiroro-Mando line was sabotaged, cutting power to KEDCO’s network for 19 days and causing three months of unreliable supply. This led to attrition among industrial customers, reversing earlier grid-reconnection gains.
These events dragged KEDCO’s full-year MRR to 74.89 percent, but adjusted figures (excluding force majeure months) show it would have ranked 7th among DisCos (84.08%), highlighting the outsized impact of external shocks.
Customer enumeration and metering emergencies
KEDCO declared a metering emergency in 2024, with less than 5 percent of distribution transformers (DTs) metered—the worst coverage nationwide.
To address this, the company deployed 99 smart meters for high-value industrial customers, boosting billing accuracy.
Kano DisCo also launched a door-to-door enumeration exercise in February 2025, targeting 1.5 million active customers (up from 664,000) by Q3 2025. It also integrated meters into an Advanced Metering Infrastructure (AMI) network to curb energy theft.
These efforts aim to reduce commercial losses and align with government programs like the Presidential Metering Initiative (PMI).
Read also: Kano DisCo defies odds, achieves record market settlement rate
Dawanau Project: A Game-Changer for Revenue
KEDCO’s N1.1 billion investment in the Dawanau International Market, a key agricultural hub—promises significant returns:
– The new 33kV power line will increase supply from 4 to 20+ hours daily, benefiting 400+ businesses.
– Projected to generate N2.4 billion in incremental revenue in 2025 and add 10MW of capacity.
This initiative exemplifies KEDCO’s strategy to unlock revenue from underserved industrial corridors.
Path to 100% Market Remittance in 2025
Despite 2024’s challenges, KEDCO is optimistic about 2025:
– It achieved N110 million in January 2025, signalling strong cash flow management.
– Targets 100 percent remittance in Q1 2025, supported by enumeration, metering, and AMI integration.
– Strategic hires (CTO, CFO, CCO) and organizational reforms aim to strengthen long-term resilience.
Road Ahead
KEDCO’s 2024 performance reveals a DisCo in transition—battling legacy issues while laying the groundwork for recovery. While force majeure events exposed vulnerabilities, initiatives like metering, enumeration, and the Dawanau project demonstrate a clear turnaround strategy.
The road ahead remains steep, but with sustained reforms, KEDCO could emerge as a model for struggling DisCos in Nigeria.