Amanze Chinonye
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) and begun the process of securing a replacement core investor for the company after years of financial and operational deterioration, Prime Business Africa reports.
The intervention took effect on Monday, August 10, 2026, under Order No. NERC/2026/086, issued pursuant to Sections 75 to 79 of the Electricity Act 2023.
Join our WhatsApp ChannelNERC said KAEDC’s cumulative market obligations had risen to approximately ₦456.5 billion as of May 2026, following prolonged defaults, weak commercial performance, inadequate investment and mounting liabilities.
READ ALSO :
NERC Mandates Regional Reporting of Transmission Losses to Boost Grid Efficiency
The obligations comprise about ₦415.5 billion owed to Nigerian Bulk Electricity Trading Plc (NBET) and ₦41 billion due to the Nigerian Independent System Operator (NISO). The company also had about ₦14.26 billion in other statutory and third-party liabilities.
The regulator said KAEDC accumulated more than ₦118.6 billion in additional market debt between June 2024, when ASI Engineering Limited assumed operational control, and May 2026.
NERC also faulted the company’s remittance performance, saying KAEDC paid only 41.93 per cent of its adjusted market invoices in 2025, leaving a market shortfall of approximately ₦46.71 billion.
The company’s operational performance was similarly weak. Its Aggregate Technical, Commercial and Collection (ATC&C) losses stood at 71.88 per cent in 2025, meaning that only about 28.2 per cent of the energy received and delivered to end-use customers was accounted for during the review period.
Investment also fell substantially below the regulatory threshold. NERC said KAEDC recorded about ₦2.48 billion in capital expenditure in 2025 against a minimum requirement of ₦24.51 billion, representing only about 10 per cent of the required investment.
Metering coverage remained between 33.26 per cent and 35.54 per cent after ASI assumed control, despite interventions aimed at increasing deployment.
NERC said the deterioration occurred despite conditions attached to its January 2024 approval of ASI’s proposed acquisition of a 60 per cent equity stake in KAEDC.
The conditions included demonstrating technical capacity, presenting a credible turnaround plan, meeting regulatory performance targets, reducing ATC&C losses and providing bank guarantees in favour of NBET and the relevant market operator.
READ MORE :
Each Nigerian Paid Nearly ₦19,000 to Electricity DisCos in December 2025
According to the commission, ASI failed to demonstrate full compliance with the outstanding conditions and did not provide a credible path for resolving KAEDC’s accumulated liabilities.
NERC also said efforts to secure a turnaround had failed, leading to the regulatory intervention under the Electricity Act 2023.
Under the new arrangement, NERC has constituted an interim board of Special Directors to oversee KAEDC during the transition.
Dr Abdullahi Garba was appointed chairman of the interim board, while other special directors include Engr Francis Agoha, Aliyu Aliyu, Major General Henry Ayamasaowei (rtd), Dr Haliru Dikko and Ayodeji Gbeleyi, representing the Bureau of Public Enterprises.
KAEDC’s Managing Director and Chief Executive Officer, Dr Abubakar Umar Hashidu, was appointed administrator for an initial six-month period.
The administrator will oversee the company’s day-to-day operations, implement directives of NERC and the interim board, safeguard the company’s assets and records, and manage matters requiring regulatory approval.
The most significant part of the intervention is the planned ownership transition.
READ ALSO :
NERC Intervenes in States-DisCos Tariff Dispute, Ex-Chairman, Others Warn of Power Play
NERC said Afreximbank would coordinate a transparent and competitive 12-month process to secure a competent replacement core investor for KAEDC.
The process is intended to attract an investor with the financial and technical capacity to stabilise the company, improve its commercial performance, reduce electricity losses and meet its obligations within the Nigerian Electricity Supply Industry.
The commission said the intervention would not interrupt electricity distribution services across KAEDC’s franchise area, with the interim management structure expected to maintain operational continuity while the investor-selection process proceeds.
The intervention highlights the financial strain facing Nigeria’s electricity distribution segment, where weak collections, high technical and commercial losses, inadequate capital expenditure and unpaid market obligations continue to weigh on the viability of DisCos.
For KAEDC, the immediate priority is now to stabilise the business under regulatory supervision while preparing it for a new investor capable of injecting capital, strengthening revenue collection, expanding metering and reducing losses.
The success of the intervention will ultimately depend on whether the new ownership structure can reverse KAEDC’s persistent financial weaknesses and restore the company’s capacity to meet its obligations across the electricity market.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
