The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) and ordered a regulatory intervention following the company’s accumulated market obligations of about N456.5 billion.
The decision took effect on Monday, August 10, 2026, under an interim regulatory intervention order issued pursuant to the Electricity Act 2023.
NERC said its review found that the company’s core investor, ASI Engineering Limited, had accumulated more than N118.6 billion in additional market debt by May 2026 while failing to provide required bank guarantees.
The regulator also disclosed that KAEDC remitted only 41.93 per cent of its adjusted market invoices in 2025 and recorded Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88 per cent.
The company also invested only N2.48 billion against a required capital investment of N24.51 billion, while customer metering coverage remained below 36 per cent.
According to NERC, the financial and operational challenges, combined with the absence of a credible recovery plan, made regulatory intervention necessary to protect consumers and maintain stability in the electricity market.
“Pursuant to sections 75-79 of the Electricity Act 2023, the board of directors of KAEDC is dissolved with immediate effect,” the commission stated.
NERC Appoints Interim Board
Following the dissolution, NERC constituted an interim board of special directors led by Abdullahi Garba as chairman.
Abubakar Hashidu was appointed administrator for an initial six-month period, subject to the commission’s review, with responsibility for managing the company’s daily operations and ensuring continuity of service.
Other members of the interim board include Francis Agoha, Aliyu Aliyu, Henry Ayamasaowei and Haliru Dikko, while Ayodeji A. Gbeleyi will represent the Bureau of Public Enterprises (BPE).
NERC also withdrew the Know-Your-Licensee (KYL) approvals previously issued to members of KAEDC’s management team and directed affected officials to undergo revalidation.
The commission said Africa Export-Import Bank (Afreximbank), in coordination with NERC, would lead a transparent 12-month competitive process to find a financially capable and technically competent replacement core investor.
NERC assured electricity consumers and other market participants within the Kaduna DisCo franchise area that normal electricity distribution services would continue throughout the transition.
Source: Nigerian Electricity Regulatory Commission (NERC).
