The Nigerian Electricity Regulatory Commission, NERC, has ordered regulatory intervention in Kaduna Electricity Distribution Plc, KAEDC, as it dissolves the board, over what it describes as prolonged financial, operational and governance failures.
A statement on NERC X handle on Monday noted that Under Order Number NERC/2026/086, effective August 10, 2026, the Commission has dissolved the board of KAEDC and appointed an interim board of special directors to oversee the company during a transition period.
“The intervention follows nearly two years of failed turnaround efforts under core investor, ASI Engineering Limited, which took over operations of the DisCo in June 2024.”
NERC said that as of May 2026, KAEDC’s cumulative market obligations since privatisation stood at approximately 456.5 billion naira, comprising 415.5 billion naira owed to Nigerian Bulk Electricity Trading, NBET, and 41 billion naira owed to the Nigerian Independent System Operator, NISO.
“The DisCo also has 14.26 billion naira in other statutory and third-party liabilities.”
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According to the Commission, KAEDC accumulated more than 118.6 billion naira in additional market debt after ASI took over operations.
NERC also faulted the company’s operational performance, saying its Aggregate Technical, Commercial and Collection losses stood at 71.88 per cent in 2025, while its metering coverage was only 34.42 per cent.
The Commission said KAEDC remitted just 41.93 per cent of its adjusted market invoices in 2025, leaving a market shortfall of approximately 46.71 billion naira.
It further said ASI invested about 2.48 billion naira in capital expenditure in 2025, against a minimum requirement of 24.51 billion naira, representing only about ten per cent of the required investment.
NERC said regulatory concessions granted to KAEDC between January 2024 and May 2026 amounted to approximately 6.58 billion naira, while Federal Government intervention funds to the company since July 2018 totalled about 53.79 billion naira.
The Commission said ASI’s request for an additional 24-month extension to stabilise the company was rejected after it failed to present a credible recovery plan.
The intervention is being implemented under Sections 75 to 79 of the Electricity Act 2023, which empower NERC to intervene in the affairs of a licensee facing prolonged default, governance challenges, inability to meet material obligations or imminent insolvency risk.
NERC appointed Dr. Abdullahi Garba as Chairman of the interim board, alongside six other special directors, including a representative of the Bureau of Public Enterprises, BPE.
The incumbent Managing Director and Chief Executive Officer, Dr. Abubakar Umar Hashidu, has been appointed Administrator for an initial six-month term.
