NERC dissolves Kaduna DisCo Board over ₦456.5bn market debt

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) over severe financial and operational challenges.

The commission announced the decision in an Interim Order, No. NERC/2026/086, which takes effect from August 10, 2026, pursuant to Sections 75–79 of the Electricity Act 2023.

According to NERC, KAEDC accumulated more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026, bringing its total market obligations to approximately ₦456.5 billion.

The commission said the electricity distribution company remitted only 41.93 per cent of its adjusted market invoices in 2025 and recorded aggregate technical, commercial and collection (ATC&C) losses of 71.88 per cent.

NERC also disclosed that KAEDC invested only ₦2.48 billion against a required capital investment of ₦24.51 billion, while customer metering coverage remained below 36 per cent.

To ensure operational stability and uninterrupted electricity supply across the company’s franchise area, NERC constituted an interim board of special directors.

The interim board will be chaired by Dr Abdullahi Garba, while Dr Abubakar Umar Hashidu has been appointed Administrator for an initial six-month term.

NERC also said Afrexim would coordinate a transparent 12-month competitive process to secure a competent replacement core investor for KAEDC.

The commission named Francis Agoha, Aliyu Aliyu, Henry Ayamasaowei and Haliru Dikko as special directors, while Ayodeji A. Gbeleyi will represent the Bureau of Public Enterprises (BPE) on the interim board.

According to NERC, the interim board will exercise governance and oversight responsibilities in line with the commission’s order, applicable provisions of the Electricity Act and KAEDC’s licence obligations.

The commission said any vacancy or replacement on the interim board would be determined solely by NERC.

Despite the intervention, the regulator assured electricity consumers within the KAEDC franchise area that distribution services would remain safe and uninterrupted.