The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of directors of the Kaduna Electricity Distribution Company (Kaduna DisCo) due to the company’s ₦110 billion debt to the Nigeria Electricity Supply Industry (NESI).
This move, signified by a regulatory order, aims to address the persistent financial challenges faced by the utility company.
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NERC, through a statement signed by Chairman Sanusi Garba and Vice Chairman Musiliu Oseni, clarified that Kaduna DisCo was among five DisCos whose promoters had taken over following the inability of core investors to repay funds acquired during privatization in 2013.
This dissolution comes after a series of government interventions to mitigate financial distress in the power sector, including the takeover of several other DisCos by entities like Fidelity Bank Plc and the Asset Management Corporation of Nigeria.
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The regulator cited Kaduna DisCo’s failure to secure a new owner capable of meeting its financial obligations, leading to the removal of all directors and the appointment of Umar Hashidu as the administrator.
Hashidu’s assumption of the CEO position was marked by a brief handover ceremony presided over by NERC Commissioner Dafe Akpaneye.
Akpaneye expressed gratitude to the former CEO while urging Hashidu to leverage available talent and resources to steer Kaduna Electric toward greater success. The commission also emphasized its commitment to managing the company’s sale in accordance with the Electricity Act, focusing on securing the highest and best price offered for the undertaking.
