NERC Dissolves Kaduna DisCo Board Over N456.5bn Debt

The Nigerian Electricity Regulatory Commission has dissolved the board of Kaduna Electricity Distribution Plc over the company’s N456.5 billion cumulative market obligations and prolonged financial and operational challenges.

The regulator announced the decision in an order titled “Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023”, which took effect on Monday, August 10, 2026.

NERC also issued an interim order placing Kaduna Electricity Distribution Plc under regulatory intervention.

“Pursuant to sections 75-79 of the Electricity Act 2023, the board of directors of KAEDC is dissolved with immediate effect,” the commission stated.

NERC said the Corporate Affairs Commission had been notified to restrict unauthorised changes to the company’s records during the transition period.

According to the regulator, a review found that ASI Engineering Limited, the company’s core investor, had accumulated more than N118.6 billion in additional market debt by May 2026 while failing to provide the required bank guarantees.

This contributed to total market obligations of approximately N456.5 billion, NERC said.

The commission also found that KAEDC remitted only 41.93 per cent of its adjusted market invoices in 2025 and recorded Aggregate Technical, Commercial and Collection losses of 71.88 per cent.

The company reportedly invested N2.48 billion against a required capital investment of N24.51 billion, while customer metering coverage remained below 36 per cent.

NERC said the financial and operational weaknesses, combined with the absence of a credible recovery plan, prompted the intervention to protect consumers, maintain service continuity and safeguard the stability of Nigeria’s electricity market.

NERC Restructures Kaduna DisCo

As part of the intervention, NERC constituted an interim board of special directors led by Abdullahi Garba as chairman.

Abubakar Hashidu was appointed administrator for an initial six-month period, subject to the commission’s review. He will oversee the company’s daily operations and work to ensure continuity of electricity distribution services.

Other members of the interim board are Francis Agoha, Aliyu Aliyu, Henry Ayamasaowei and Haliru Dikko, who were appointed special directors. Ayodeji A. Gbeleyi will represent the Bureau of Public Enterprises.

NERC also withdrew the Know-Your-Licensee approvals previously issued to members of the KAEDC management team.

The affected management staff were directed to present themselves for revalidation of their KYL approvals by the commission.

The regulator further announced that Africa Export-Import Bank, in coordination with NERC, would lead a transparent 12-month competitive process to secure a financially capable and technically competent replacement core investor for Kaduna DisCo.

NERC assured electricity consumers and market participants across the Kaduna DisCo franchise area that electricity distribution services would continue safely and without interruption during the transition.