The Nigerian Electricity Regulatory Commission has dissolved the board of Kaduna Electricity Distribution Plc over the company’s cumulative market obligations of about ₦456.5bn and prolonged financial and operational challenges.

The decision, contained in Order No. NERC/2026/086, took effect on August 10, 2026, following an inquiry and consultations with key industry stakeholders, including the Bureau of Public Enterprises.

According to NERC, the company owed about ₦415.5bn to the Nigerian Bulk Electricity Trading Plc and ₦41bn to the Nigerian Independent System Operator as of May 2026. It also had ₦14.26bn in other statutory and third-party obligations.

The regulator said Kaduna DisCo had paid only 41.93% of its adjusted market invoices in 2025, leaving a market shortfall of about ₦46.71bn during the year.

NERC also reported that the company recorded aggregate technical, commercial and collection losses of 71.88% in 2025, meaning it could account for only about 28.2% of the electricity received and delivered to customers.

The commission said the company’s capital expenditure performance was also inadequate. Kaduna DisCo invested about ₦2.48bn in 2025 against a minimum provision of ₦24.51bn, representing only 10% performance.

NERC further disclosed that ASI Engineering Limited, which took over operations of the company in June 2024, had accumulated more than ₦118.6bn in additional market debt by May 2026.

The regulator said ASI had also failed to meet its capital injection commitments and requested an additional 24 months to stabilise the company. NERC rejected the request, saying the company had remained under ASI’s effective control since June 2024 without sufficient improvement in its financial and operational performance.

The commission has appointed an interim board of special directors and directed the commencement of a transparent process to select a new core investor, with the transition expected to be completed within 12 months.

NERC said the intervention was necessary to preserve Kaduna DisCo as a going concern, protect electricity consumers and reduce the risk the company’s financial difficulties posed to the wider Nigerian electricity market.