The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) following the company’s growing financial problems and failure to meet major obligations in Nigeria’s electricity market.
The regulatory action took effect on Monday, August 10, 2026, under an order issued pursuant to the Electricity Act 2023. NERC also appointed an interim board and ordered the beginning of a transparent process to find a new core investor for the electricity distribution company.
The regulator said KAEDC’s financial position had become a serious concern, with its cumulative market obligations reaching about N456.5 billion as of May 2026.
Of the amount, approximately N415.5 billion was owed to the Nigerian Bulk Electricity Trading Plc (NBET), while another N41 billion was due to the Nigerian Independent System Operator. The company also had about N14.26 billion in other statutory and third-party obligations.
NERC said the situation had worsened since ASI Engineering Limited took control of KAEDC in June 2024. According to the commission, the company accumulated more than N118.6 billion in additional market debt during the period.
The regulator also pointed to KAEDC’s poor payment record. In 2025, the company paid only 41.93 per cent of its adjusted market invoices, leaving a shortfall of about N46.71 billion.
Another major concern was the company’s high electricity losses. NERC said KAEDC recorded aggregate technical, commercial and collection losses of 71.88 per cent in 2025. This meant the company was effectively accounting for only about 28.2 per cent of the electricity supplied to it and delivered to customers.
Investment in the distribution network was also far below expectations. NERC said KAEDC spent about N2.48 billion on capital expenditure in 2025, compared with a minimum requirement of N24.51 billion. The figure represented only about 10 per cent of the expected investment.
Metering also remained a major challenge. According to NERC, KAEDC’s meter coverage stayed between 33.26 per cent and 35.54 per cent after ASI took over, despite government and regulatory efforts to increase electricity metering.
The commission said the company had received significant support but failed to achieve a sustainable turnaround. About N6.58 billion in regulatory relief had been granted between January 2024 and May 2026, while Federal Government interventions to the company since July 2018 amounted to approximately N53.79 billion.
NERC said the continued financial and operational weakness posed risks to electricity consumers, creditors and the stability of the wider power market.
The regulator had previously asked KAEDC’s shareholders and Afrexim Bank to provide a credible recovery plan. ASI later requested up to 24 additional months to improve the company’s cash flow, increase investment and work towards full market remittances.
However, NERC rejected the request, arguing that ASI had already been in effective control of KAEDC for more than two years without delivering significant improvements.
As part of the intervention, NERC removed all existing directors and appointed seven special directors to oversee the company during the transition. Dr Abdullahi Garba was appointed chairman, while other members include Engr Francis Agoha, Mr Aliyy Aliyu, retired Major General Henry Ayamasaowei, Dr Haliru Dikko, Mr Ayodeji Gbeleyi of the Bureau of Public Enterprises and Dr Abubakar Umar Hashidu.
Hashidu, who remains the company’s Managing Director/Chief Executive Officer, was also appointed administrator for an initial six-month period.
NERC said the administrator would oversee daily operations, protect the company’s assets and records, maintain electricity distribution services and implement decisions of the interim board.
The commission further directed Afrexim Bank to coordinate an open and competitive process for selecting a replacement core investor. The preferred investor must be presented to NERC for approval, with the process expected to be completed within 12 months.
The intervention is aimed at preventing further deterioration of KAEDC, protecting electricity consumers and creating a pathway for the company to return to financial and operational stability.
