NERC Dissolves Kaduna Electric Board Over N456.5bn Debt, Appoints Interim Management

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) following what it described as severe financial and operational challenges confronting the electricity distribution company.

The regulatory action is contained in Interim Order No. NERC/2026/086, issued pursuant to Sections 75–79 of the Electricity Act 2023. The order takes effect from Monday, August 10, 2026.

According to NERC, KAEDC’s financial position had deteriorated significantly, with the company accumulating more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026. This pushed the distributor’s total market obligations to approximately ₦456.5 billion.

The regulator also cited KAEDC’s weak payment performance, noting that the company remitted only 41.93 per cent of its adjusted market invoices in 2025. The shortfall was accompanied by an Aggregate Technical, Commercial and Collection (ATC&C) loss rate of 71.88 per cent, highlighting the scale of the distributor’s operational and revenue-collection challenges.

NERC further disclosed that KAEDC invested only ₦2.48 billion during the period under review, compared with a capital requirement of ₦24.51 billion. Customer metering coverage also remained below 36 per cent, a situation that continues to pose challenges for accurate electricity billing and revenue collection.

The commission said the intervention became necessary to address the distributor’s deteriorating financial condition and ensure stability within its franchise area. NERC’s earlier regulatory assessments had also identified persistent failures by Kaduna DisCo to meet market obligations and improve its performance.

To prevent disruption to electricity distribution, NERC has constituted an interim board of Special Directors to oversee the affairs of KAEDC. Dr. Abdullahi Garba has been appointed chairman of the interim board, which is expected to provide direction for the company during the regulatory intervention.

Dr. Abubakar Umar Hashidu has also been appointed Administrator and Special Director for an initial six-month term. The administrator will oversee the company’s day-to-day operations while efforts are made to restore stability and establish a sustainable management structure.

As part of the broader restructuring process, Afrexim is expected to coordinate a transparent 12-month competitive process for the selection of a competent replacement core investor for KAEDC. The process is intended to provide a pathway towards improved financial sustainability, investment and operational performance.

Despite the sweeping regulatory intervention, NERC assured electricity consumers within KAEDC’s franchise area that distribution services remain operational and uninterrupted. The company’s franchise covers Kaduna, Kebbi, Sokoto and Zamfara states.

The commission’s action represents another major regulatory effort to address persistent financial and operational weaknesses within Nigeria’s electricity distribution sector. The full Interim Order is available through NERC’s official website for consumers and industry stakeholders seeking further details.