The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company (KAEDC) over mounting financial obligations, persistent regulatory breaches and poor operational performance.
The regulator said the electricity distribution company had accumulated N456.5 billion in market obligations as of May 2026, prompting the latest intervention.
According to NERC, KAEDC owes N415.5 billion to the Nigerian Bulk Electricity Trading Plc (NBET) and another N41 billion to the Nigerian Independent System Operator (NISO). The company also has N14.26 billion in other non-market liabilities.
The commission said N118.6 billion of the market debt was accumulated within less than two years after ASI Engineering Ltd assumed operational control of the DisCo in June 2024.
NERC also raised concerns over the company’s 2025 performance, stating that KAEDC settled only 41.93 per cent of its adjusted market invoices during the year, leaving a market shortfall of N46.71 billion.
The company’s Aggregate Technical, Commercial and Collection (ATC&C) losses also reached 71.88 per cent, while only 28.2 per cent of electricity received during the review period was successfully billed to customers.
The regulator further disclosed that KAEDC invested N2.48 billion in capital expenditure in 2025, far below the N24.51 billion minimum requirement.
NERC said the intervention was carried out under Section 75 of the Electricity Act and was necessitated by persistent payment defaults, weak governance and failure to meet minimum investment and operational requirements.
Under the new arrangement, NERC has appointed a six-month interim management team headed by Dr Abubakar Hashidu as Interim Managing Director and Chief Executive Officer. Dr Abdullahi Garba will serve as Chairman, while Engr. Francis Agoha was appointed Special Director and Mr Ayodeji Gbeleyi will represent the Bureau of Public Enterprises.
The commission has also mandated Afreximbank to lead a transparent process for identifying a new core investor for Kaduna DisCo within 12 months.
In addition, NERC ordered a 90-day reconciliation of the company’s liabilities involving KAEDC, NBET, NISO, BPE and other creditors.
The interim management has been directed to continue electricity distribution within the company’s available technical capacity while taking steps to stabilise its financial and operational position.
