NERC Dissolves KAEDC Board Over ₦456.5bn Debt, Appoints Interim Directors

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) over severe financial and operational challenges, with the decision taking effect from August 10, 2026.

In a post on its X handle, NERC said the action was contained in Interim Order No. NERC/2026/086 and was taken pursuant to Sections 75–79 of the Electricity Act 2023.

The commission said KAEDC had accumulated more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026, pushing its total market obligations to approximately ₦456.5 billion.

NERC also cited several operational and financial shortcomings, including the company’s remittance of only 41.93 per cent of its adjusted market invoices in 2025 and an Aggregate Technical, Commercial and Collection (ATC&C) loss rate of 71.88 per cent.

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The commission said KAEDC invested only ₦2.48 billion against a capital requirement of ₦24.51 billion, while customer metering coverage remained below 36 per cent.

To maintain operational stability and ensure uninterrupted electricity distribution, NERC ordered the constitution of an interim board of Special Directors.

Dr. Abdullahi Garba was appointed chairman, while Francis N. Agoha, Dr. Aliyu E. Aliyu, Major General Henry E. Ayamasowei (rtd.), Dr. Haliru Dikko and Mr. Ayo­deji A. Gbeleye were appointed Special Directors.

Mr. Abubakar Umar Hashidu was appointed Administrator and Special Director for an initial six-month term, subject to review by the commission.

The commission said the interim board would be responsible for managing the day-to-day operations of KAEDC and ensuring continuity of service.

NERC also announced that the Know-Your-Licence (KYL) approvals issued to members of KAEDC’s management team had been withdrawn, while all management staff whose KYL approvals had expired were barred from revalidation by the commission.

The commission said Africa Export-Import Bank (Afrexim), in coordination with NERC, would lead a transparent 12-month competitive process to secure a financially capable and technically competent replacement core investor for KAEDC.

“Electricity distribution services across the KAEDC franchise area remain safe and uninterrupted during this transition period,” NERC said.

The regulator added that the intervention was aimed at stabilising the distribution company and protecting electricity consumers within its franchise area.