Is this a loan the government is taking?

How exactly will the investor recoup such a massive amount—almost N800 billion?

Will the cost be passed on to citizens through service fees?

I’m glad to report that the state government has now offered further clarification, setting the record straight. According to a new official statement:

It is NOT a loan.

No debt, no interest, no collateral.

Genesis Energy is investing its own funds and will recover its money through equity and profit-sharing arrangements.

In plain terms, the company will earn returns by co-owning or running the energy projects and sharing profits from the energy they generate—whether it’s sold to government facilities, institutions, or the public.

This level of transparency is commendable, and I appreciate the administration for listening to public concerns and offering clearer details. This is how trust is built in public-private partnerships—through communication, clarity, and accountability.

We’ll continue to follow developments and ask the right questions so the people of Katsina can fully benefit from such initiatives without hidden burdens.

Below is the statement issued from the office of the Special Adviser, Department of Power and Energy:

MATTERS ARISING

Setting the Record Straight:

 Katsina State’s $500 Million Investment Partnership with Genesis Energy Group

In light of recent public discourse, speculation and misconceptions surrounding the newly signed partnership between the Katsina State Government and Genesis Energy Group, it is important to set the record straight. 

Contrary to speculation, the $500 million deal is not a loan. It is a direct private investment—a forward-thinking collaboration aimed at expanding energy infrastructure and accelerating industrial development across the state.

This strategic partnership entails Genesis Energy Group committing capital and technical expertise in return for agreed returns through equity or profit-sharing. The arrangement involves no debt, no interest payments, and no collateral obligations for the state government.

Key Highlights of the Investment Structure:

- No Debt Incurred: The state government is not borrowing money and bears no repayment responsibility.

- Asset-Free Model: No public assets are being used as collateral.

- Private Sector-Driven: The investor provides funding and operational leadership.

- Focus on Sustainability and Development: The initiative will increase energy capacity, support industrial growth, and create jobs.

This project is a cornerstone of Governor Dikko Umaru Radda’s broader strategy to attract long-term private investments and strengthen Katsina’s economic foundation through innovative public-private partnerships.

It is also important to differentiate this partnership from other government-led energy projects. Notably, in 2024, the State Executive Council approved and implemented a Solar MiniGrid system at the Government House and General Hospital, later upgraded to a 1.3MW solar PV system with a 1.3MWh battery energy storage unit. This separate project, completed at a total cost of N1.99 billion, was executed without variation, despite challenges posed by exchange rate fluctuations and inflation—underscoring the administration’s fiscal discipline and technical foresight.

Each initiative reflects the multifaceted approach of Governor Radda’s administration to secure reliable energy, promote innovation, and build a resilient economy for the people of Katsina State.

Engr. Abdulaziz Kabir Abdullahi, 

Technical Assistant on Renewable Energy to the Executive Governor

  

For: Special Adviser, Department of Power & Energy

#AccountabilityMatters #EnergyInvestment #KatsinaDevelopment #PublicPrivatePartnership