The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) following a deepening financial crisis that has left the electricity distributor with about ₦456.5bn in cumulative market obligations. The regulatory action, which took effect on Monday, August 10, 2026, also includes the appointment of an interim board and plans to find a new core investor for the company.
According to NERC, KAEDC’s outstanding market obligations include approximately ₦415.5bn owed to the Nigerian Bulk Electricity Trading Plc and another ₦41bn due to the Nigerian Independent System Operator. The company also has about ₦14.26bn in other statutory and third-party obligations. The regulator said the situation had worsened despite various financial interventions, including about ₦6.58bn in regulatory support and more than ₦53.79bn in Federal Government intervention funds since 2018.
NERC said the company’s weak financial position has been accompanied by serious operational challenges. KAEDC paid only 41.93 per cent of its adjusted market invoices in 2025, leaving a market shortfall of about ₦46.71bn. Its aggregate technical, commercial and collection losses also reached 71.88 per cent, meaning the company could account for only about 28.2 per cent of the electricity it received and supplied to customers during the period. The regulator further said capital spending fell far short of requirements, with only ₦2.48bn invested in 2025 against a minimum provision of ₦24.51bn.
The latest intervention follows more than two years of ASI Engineering Limited’s control of KAEDC, which began in June 2024. NERC said ASI had accumulated an additional market debt of more than ₦118.6bn during that period and failed to meet its capital injection commitments. Although the company requested up to 24 more months to stabilise its finances and improve operations, the commission rejected the request, arguing that there had been no meaningful turnaround despite the time already given.
Under its new order, NERC has appointed seven special directors to oversee the transition, with Dr Abdullahi Garba as chairman. The commission also appointed KAEDC’s Managing Director/CEO, Dr Abubakar Umar Hashidu, as administrator for an initial six-month period. Meanwhile, Afrexim Bank has been directed to coordinate an open and competitive process to secure a replacement core investor, with NERC expected to approve the preferred investor. The process is expected to be completed within 12 months, as the regulator moves to protect electricity supply and prevent the financial crisis from causing further disruption to customers.
source: punch
