In furtherance of its regulatory roles of ensuring efficiency in the nation’s electricity industry value chains, the Nigerian Electricity Regulatory Commission (NERC) on Monday dissolved the board of Kaduna Electricity Distribution Company Plc (KAEDC) over the DisCo’s N456.5 billion cumulative market debt and other related financial challenges.
To avoid any disruption in the state’s power supply, the commission an interim board of special directors and ordered the team to commence a transparent process to approve a new core investor for the DisCo.
In its Order No. NERC/2026/086, which was issued sequel to an inquiry and consultations with key stakeholders, including the Bureau of Public Enterprises (BPE) on the KAEDC challenges and becomes effective from Monday, 10 August 2026, the commission stated that the intervention became necessary due to DisCo’s prolonged regulatory and market defaults, inadequate investment, and weak operational performance.
The NERC disclosed that the company’s cumulative market debt stood at approximately N456.5 billion as of May 2026, comprising N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion due to the Nigerian Independent System Operator (NISO) as well as an additional N14.26 billion in non-market statutory obligations.
- Advertisement -
The NERC clarified: “The commission, following its inquiry and consultation undertaken with key industry stakeholders including the Bureau of Public Enterprises, finds that Kaduna Electricity Distribution Plc is in a grave situation characterised by prolonged regulatory and market default, inadequate investment, weak operational and commercial performance, insufficient assets relative to liabilities, and inability to present a credible pathway to sustainable recovery.”
Since ASI Engineering Limited took over its operations in June 2024, KAEDC had accrued more than N118.6 billion in fresh market debt.
The DisCo paid only 41.93 per cent of its adjusted market invoices in 2025, creating a shortfall of roughly N46.71 billion due largely to technical, commercial and collection losses of 71.88 per cent, implying that it could only account for 28.2 per cent of electricity delivered to customers.
The data also reflected that ASI also failed to meet its capital injection commitments, spending just N2.48 billion against a required N24.51 billion, indicating only 10 per cent compliance.
Similarly, the KAEDC meter coverage stood between 33.26 per cent and 35.54 per cent throughout ASI’s management of the company, despite ongoing Federal Government’s supports to DisCos on meter distribution nationwide.
According to the NERC, ASI requested a 24-month extension to stabilise KAEDC’s finances but the application was rejected due to the company’s failure to improve performance despite years of control.
The commission stated: “The continued underperformance therefore poses material risk to end-use customers, creditors, market stability and continuity of electricity service.”
Hinging its regulatory action on the KAEDC on provisions of Sections 75 to 79 of the Electricity Act 2023, NERC maintained: “KAEDC’s board of directors is HEREBY DISSOLVED. All directors of KAEDC are removed from office, and the existing board stands dissolved pursuant to section 75 of the EA.”
Based on the dissolution of the old board, seven special directors now formed the interim board of the DisCo. The team is led by Dr Abdullahi Garba, who is serving as its chairman, while the other directors comprised Engr Francis Agoha, Mr Aliyy Aliyu, retired Major General Henry Ayamasaowei, Dr Haliru Dikko, Mr Ayodeji Gbeleyi (representing BPE), and Dr Abubakar Umar Hashidu.
The KAEDC’s incumbent CEO, Dr Hashidu, was also appointed administrator for an initial six-month term to oversee daily operations and safeguard the company assets.
