National reforms leading to the unbundling and privatisation of Nigeria’s Power Holding Company in 2013 resulted in the creation of the privately owned distribution firm Kaduna Electric, which is licensed to supply power in the state. At the same time the Kaduna Power Supply Company (KAPSCO), fully owned by the Kaduna government, was created to undertake energy initiatives in areas where significant supply gaps remain. KAPSCO has spearheaded a number of projects to supply power to rural communities and industrial sites such as the Green Economic Zone in Maraban Jos, Damau Household Milk Farm in Kubau, and the state’s two largest water treatment plants in Malali and Zaria.
The most recent Kaduna State General Household Survey indicates that access to electricity has increased significantly in recent years. According to the responses, 75.4% of households were connected to the grid in 2017, an increase of 6.7 percentage points compared to 2015. Improvements were also recorded in terms of access to other utilities, with the proportion of households lacking drainage systems falling from 58.6% to 46.8% over the same period. Nevertheless, a large electrification gap remains, and KAPSCO and the Kaduna Investment Promotion Agency (KADIPA) are looking to public-private partnerships to overcome challenges.
Kaduna is home to one of the four refineries owned by the Nigerian National Petroleum Corporation (NNPC). The Kaduna Refining and Petrochemical Company (KRPC) – a NNPC subsidiary – operates the facility, which has an installed capacity of 110,000 barrels per stream day. The refinery, which has been operational since 1988, can produce fuels for use as liquefied petroleum gas, premium motor spirit, automotive gas oil, diesel oil, kerosene and fuel oil. It also makes lubricating oils and waxes. In recent years the KRPC has been unable to utilise its capacity and recorded net losses. The NNPC is planning to turn the KRPC profitable through investment in rehabilitation, re-engineering and upgrades.
The government of Kaduna has identified renewable energy as an important source to tap into as part of its strategy to close the electricity gap, with the state actively pursuing partnerships with the private sector. To achieve rural electrification objectives, Kaduna has been developing a portfolio of projects with financially sound off-takers, and is utilising a mix of public and private finance in a process led by KAPSCO. Solar is a particularly promising renewable energy option, as the state has abundant sun and particularly high levels of radiation in Rigachikun and neighbouring areas. Kaduna aims to generate 50-300 MW of solar energy in three local government areas, which KADIPA estimates would provide 1000 direct and 5000 indirect jobs.
KADIPA has already attracted a number of solar companies to the state. These include Anjeed Kafanchan Solar, a subsidiary of Anjeed Innova Group of India, which has signed a power purchase agreement with the Nigeria Bulk Electricity Trading Company (NBETC) for their 100-MW solar plant situated in Kaduna State; Quaint Abiba, a US-based energy company that has agreed to a similar PPA with the NBETC for a 50-MW project in Kaduna; and India-based Skipper Seil, which is also building a 100-MW plant in addition to agreeing to the production of electricity transformers and accessories for Kaduna.
Another local firm driving the shift to renewables is Blue Camel Energy, which has set up a solar academy in Kaduna. The company’s production plant and training academy is based in the Kakuri industrial area, where it has trained personnel for the deployment of solar solutions, cultivating entrepreneurs and equipping project developers. The plant has the capacity to assemble over 10,000 units of solar products per year, while the academy offers entrepreneurship training to around 3000 young adults annually.