The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of directors of Kaduna Electricity Distribution Plc (KAEDC) following the company’s mounting market debt and deteriorating operational performance.
The regulatory action, contained in Order No. NERC/2026/086, signed by NERC Chairman Musiliu Oseni and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, removes the existing directors and introduces an interim management structure for the electricity distribution company.
Kaduna DisCo’s debt hits ₦456.5bn
According to NERC, KAEDC owed a combined ₦456.5 billion to key participants in Nigeria’s electricity market as of May 2026.
The debt comprised ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and another ₦41 billion owed to the Nigerian Independent System Operator (NISO).
The regulator also said the company had accumulated ₦14.26 billion in non-market statutory obligations.
NERC’s intervention comes after the DisCo continued to record significant financial and operational challenges despite a change in ownership and management.
Poor performance triggers regulatory intervention
KAEDC’s performance indicators showed significant weaknesses during the review period.
NERC said the company remitted only 41.93 per cent of its adjusted market invoices in 2025, leaving a shortfall of about ₦46.71 billion.
The company also recorded an Aggregate Technical, Commercial and Collection (ATC&C) loss of 71.88 per cent, meaning only about 28.2 per cent of the electricity supplied to the distribution network translated into collected value.
Capital expenditure performance was similarly low.
According to the regulator, ASI Engineering spent only ₦2.48 billion on capital expenditure against a required minimum of ₦24.51 billion, representing about 10 per cent performance.
Metering coverage also remained low, fluctuating between 33.26 per cent and 35.54 per cent.
New interim board appointed
NERC said it was exercising its powers under Sections 75 to 79 of the Electricity Act 2023 to restructure the management of the DisCo.
The new interim board will be chaired by Dr Abdullahi Garba.
Other members appointed as special directors include:
- Engr. Francis U. Agoha
- Mr Aliyu E. Aliyu
- Major General Henry E. Ayamasaowei (rtd)
- Dr Haliru Dikko
- Mr Ayodeji A. Gbeleyi, representing the Bureau of Public Enterprises (BPE)
The current Managing Director, Dr Abubakar Umar Hashidu, will serve as Administrator for an initial six-month period and remain responsible for the company’s day-to-day operations.
NERC withdraws management approvals
The Commission also withdrew the Know Your Licensee (KYL) approvals previously issued to members of KAEDC’s management team.
Affected officials have been directed to undergo a fresh validation process as part of the regulatory changes.
The move effectively places the DisCo under tighter regulatory oversight while efforts are made to stabilise its operations and financial position.
Afreximbank to lead search for new investor
NERC further disclosed that Afreximbank will lead a competitive process to identify a new core investor for Kaduna DisCo within the next 12 months.
The development follows the company’s continued financial difficulties under its current core investor, ASI Engineering Limited, which assumed control in June 2024 alongside technical partner Akanksha Power and Infrastructure Limited (APIL).
NERC said the company accumulated more than ₦118.6 billion in additional debt during the two years following the takeover.
The latest intervention therefore sets the stage for a potential ownership and management overhaul as regulators seek to restore financial discipline, improve electricity distribution and strengthen service delivery across KAEDC’s franchise area.
