NERC Dissolves Kaduna Electricity Board Over ₦456.5bn Market Debt
ISSN: 2354-4481
By Onwuka Jenifer Ola
ABUJA — The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Board of Kaduna Electricity Distribution Plc (KAEDC), citing severe financial insolvency, mounting market debt and poor operational performance.
In an Interim Order, referenced as Order No. NERC/2026/086, the electricity regulator said the dissolution takes effect from August 10, 2026, in accordance with Sections 75–79 of the Electricity Act 2023.
NERC disclosed the development in a statement issued on Monday, explaining that the decision followed what it described as serious financial and operational challenges confronting the Kaduna electricity distribution company.
According to the commission, KAEDC accumulated more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026.
The additional liability, NERC said, brought the company’s total market obligations to approximately ₦456.5 billion.
The regulator further cited several indicators of poor financial and operational performance, including the company’s remittance of only 41.93 per cent of its adjusted market invoices in 2025.
KAEDC also recorded 71.88 per cent Aggregate Technical, Commercial and Collection (ATC&C) losses, according to NERC.
The commission said the distribution company invested only ₦2.48 billion during the period, compared with a capital investment requirement of ₦24.51 billion.
Customer metering coverage was also below 36 per cent, NERC stated, highlighting what it considered significant shortcomings in the company’s ability to provide efficient electricity distribution services to consumers within its franchise area.
To prevent the regulatory intervention from disrupting electricity supply, NERC announced the constitution of an interim management structure for the company.
The commission said an Interim Board of Special Directors had been constituted and would be chaired by Dr Abdullahi Garba.
It also appointed Dr Abubakar Umar Hashidu as Administrator for an initial period of six months.
The new interim arrangement, according to the regulator, is intended to ensure operational stability and uninterrupted electricity distribution while measures are taken to address the company’s financial and management challenges.
NERC further announced that Afrexim would coordinate a transparent 12-month competitive process aimed at securing a competent replacement core investor for KAEDC.
The commission said the process would provide an opportunity for qualified investors to participate in determining the future ownership and management structure of the electricity distribution company.
Abuja, Nigeria’s Federal Capital Territory, is the administrative centre of the country and the headquarters of several federal regulatory agencies, including NERC. The commission is responsible for regulating Nigeria’s electricity supply industry, including electricity generation, transmission and distribution activities.
Kaduna Electricity Distribution Plc, headquartered in Kaduna, is one of Nigeria’s electricity distribution companies and serves customers across parts of the country's North-West and North-Central regions. Its operational performance has significant implications for electricity consumers, businesses and public institutions within its franchise area.
The latest intervention comes as the federal electricity regulator continues to exercise its statutory powers to address financial, operational and governance challenges within Nigeria’s power sector.
NERC said the interim measures were designed to protect electricity supply and promote stability while a longer-term investment solution is pursued.
The dissolution of the KAEDC board therefore marks a major regulatory intervention in the distribution segment of Nigeria’s electricity market, with the new interim management expected to oversee the company during the transition period.
By Onwuka Jenifer Ola
