In a significant development for the power sector in northern Nigeria, electricity unions at the Kano Electricity Distribution Company (KEDCO) have suspended an indefinite strike action that had lasted for the past 72 hours. This decision follows the successful resolution of contentious issues through a fresh agreement with the company's management, bringing relief to millions of residents and businesses affected by the total blackout.
Resolution of Key Disputes
The unions, operating under the umbrella of the Senior Staff Association of Electricity and Allied Companies (SSAEAC) and the National Union of Electricity Employees (NUEE), agreed to halt the industrial action after intensive negotiations. According to a statement issued on Friday by KEDCO spokesperson Sani Bala, the resolution was facilitated by key stakeholders including the Nigerian Labour Congress (NLC), the Bureau of Public Enterprises (BPE), Future Energies Africa (FEA) as the core investor, and the Kano State Ministry of Power and Renewable Energy.
Financial Settlements and Commitments
The agreement includes substantial financial payouts to address long-standing grievances. Specifically, KEDCO has paid arrears totaling One Hundred and Seventy Million Naira (₦170,000,000), covering a 13th-month salary bonus of ₦150,000,000 dating back to 2019 and an appraisal bonus of ₦20,000,000 from 2022. Additionally, the company has committed to settling the 2025 13th-month salary arrears of One Hundred and Seventy-Four Million Naira (₦174,000,000) in the February 2026 salary cycle, alongside regular salary payments.
Focus on Inherited Issues
Bala emphasized that management has prioritized resolving inherited issues such as unpaid pension obligations, employee emoluments, and benefits, which stem from a restructuring exercise that saw FEA emerge as the new core investor. He stated, The company is making progress and anticipates that our current plan and trajectory will resolve these inherited issues, highlighting ongoing efforts to stabilize the workforce and improve operational efficiency.
Impact of the Strike
The strike caused severe socio-economic disruptions across KEDCO's franchise states of Kano, Katsina, and Jigawa. Small, micro, and medium-scale businesses suffered losses estimated in millions of naira due to the blackout, underscoring the critical role of reliable electricity in the region's economy. The suspension of the strike is expected to restore normalcy and mitigate further financial hardships for these enterprises.
Establishment of a Dialogue Framework
To prevent future conflicts, the parties have agreed to establish an expanded dialogue framework. This will involve representatives from the NLC Secretariat, the electricity labour unions, and the KEDCO Board to address other pending complex issues. The collaborative approach aims to ensure lasting solutions that serve the interests of all stakeholders, including workers, management, and customers.
Terms of the Suspension
Based on the agreements reached, the industrial action has been suspended with immediate effect. A key provision of the settlement is a no-victimization clause, ensuring that no worker or stakeholder will face reprisals as a result of the strike. KEDCO has also thanked its customers for their understanding and patience during the blackout period and assured that mechanisms are being developed to prevent a recurrence of such industrial actions in the future.
This resolution marks a positive step towards labour harmony in Nigeria's electricity distribution sector, with potential implications for similar disputes in other regions. The focus now shifts to implementing the agreed terms and fostering a more stable working environment at KEDCO.
