For decades, Kogi State has been defined by the famous meeting point of the Niger and Benue rivers. However, following President Bola Tinubu’s signing of the Electricity Act (Amendment) Bill 2025, the “Confluence State” will witness a much more lucrative partnership: a cocktail of massive natural energy reserves and an industrial revolution.
As the federal monopoly on power breaks apart, Kogi is emerging as the clear leader in the race for energy independence. While other states are still figuring out their first steps, Kogi’s unique “Energy Triple Threat” of gas, coal, and ready-to-use infrastructure positions it to become the powerhouse of the entire federation.
The 2025 Amendment has moved electricity from the Exclusive Legislative List to the Concurrent List. In simple terms, the chains are off. The state government no longer needs to wait for Abuja’s permission to power its own streets and factories.
Through the recently inaugurated Kogi State Electricity Regulatory Commission (KERC), the state has already started licensing private investors to build, manage, and distribute power. This shift transforms Kogi from a simple transit point for national energy into a sovereign, self-sustaining energy market.
Kogi’s first major advantage is its role as the gateway for the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline. Under the new law, the state can legally request “embedded generation.” This means gas-fired power plants can be built directly along the pipeline route within Kogi to feed electricity straight into local industrial clusters. By bypassing the fragile national grid, Kogi-based industries can finally enjoy the 24/7 power that has been a dream for years.
The Ajaokuta Compressed Natural Gas (CNG) and Mini-Liquefied Natural Gas (LNG) cluster project in Ajaokuta, Kogi State, is the first uptaker of the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.
While gas provides the spark, the real treasure for Kogi’s economic future lies beneath the soil of eastern Kogi. According to the Nigerian Geological Survey Agency (2020), Kogi’s coal reserves are the most extensive in Nigeria, boasting an estimated 3 billion metric tons. These reserves are primarily bituminous, a high-energy coal perfectly suited for large-scale electricity generation and heavy industrial work like steel and cement production.
To fully capitalize on this, experts are pushing for Integrated Industrial Hubs situated directly at coal sites in Ankpa, Omala, and Dekina to eliminate transport costs and road accidents associated with coal hauling. By using a “Mine-Mouth” model, electricity is generated right at the source and fed directly into neighboring factories.
This “Ruhr Valley” model for Kogi offers three distinct wins: first, zero transmission loss, power is used exactly where it is made, leading to the lowest electricity costs in West Africa, lower production costs, and higher marginal profits for surrounding industries. Second, reliability: bituminous coal provides the steady, high-heat energy required for heavy industries. Third, jobs where they are needed: these hubs will turn rural communities into technical centers, providing high-skill jobs and better roads directly in the industrial hubs and their environs.
The biggest winner of this legislation might be the Ajaokuta Steel Complex. After years of being held back by federal red tape and international conspiracies, the complex can now be part of an Independent Electricity Distribution Network. With the massive capacity of the nearby Geregu Power Plants and transmission grid, Kogi State can negotiate contracts, hence realizing the dream of an Ajaokuta industrial city.
While most states will spend the next five years setting up committees and hunting for energy, Kogi is already “plugged in.” With the existing Geregu plants, the crossing gas lines, and the 3 billion metric tons of coal in the East, the state is ready to offer investors something rare in Nigeria.
To succinctly summarize, “Kogi is no longer just a state you drive through to get to Abuja. It is the state you move your factory to if you want 24/7 electricity at the cheapest price.”
– Comrade Awodi Joel Ochala
awodijoel@gmail.com
