The Nigerian Electricity Regulatory Commission (NERC) has wielded the big stick against Kaduna Electricity Distribution Plc (KAEDC), dissolving its board over mounting financial distress, crippling market debt and persistent operational failures.
In an Interim Order, Order No. NERC/2026/086, effective Monday, August 10, 2026, NERC invoked Sections 75–79 of the Electricity Act 2023 to remove the utility’s board and impose an interim management structure.
The regulator’s action followed what it described as severe financial insolvency, with KAEDC’s financial obligations spiralling to approximately ₦456.5 billion.
A major red flag was the accumulation of more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026, piling further pressure on the already distressed electricity distributor.
NERC also raised serious concerns over KAEDC’s inability to meet its financial obligations to the electricity market.
According to the order, the DisCo remitted only 41.93 per cent of its adjusted market invoices in 2025, leaving a substantial portion of its obligations unpaid.
The company’s operational performance was equally troubling, with Aggregate Technical, Commercial and Collection (ATC&C) losses hitting 71.88 per cent.
The regulator further disclosed that KAEDC invested just ₦2.48 billion in its network and operations against a capital requirement of ₦24.51 billion.
This represented a massive investment shortfall at a time when the DisCo was expected to strengthen its infrastructure and improve electricity supply to customers.
NERC also pointed to the company’s poor metering performance, noting that customer metering coverage remained below 36 per cent.
The combination of soaring indebtedness, weak remittances, high losses, inadequate investment and low metering coverage ultimately triggered the regulator’s intervention.
Interim Board Takes Charge
To prevent the crisis from spilling over into electricity supply and ensure stability across the franchise area, NERC has constituted an interim board of Special Directors.
The new board will be chaired by Dr. Abdullahi Garba, while Dr. Abubakar Umar Hashidu has been appointed Administrator for an initial six-month period.
The intervention is designed to provide immediate oversight and stabilise the company while a permanent solution is sought.
NERC said Afrexim will coordinate a transparent, competitive 12-month process aimed at securing a competent replacement core investor for KAEDC.
The process is expected to provide a fresh ownership and investment structure capable of addressing the DisCo’s deep-rooted financial and operational challenges.
Despite the sweeping management shake-up, NERC stressed that electricity distribution across the Kaduna DisCo franchise area remains safe and uninterrupted.
The regulator’s intervention therefore marks a major escalation in its efforts to enforce financial discipline and operational accountability within Nigeria’s electricity distribution sector.
