ABUJA — The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company (KAEDC) and appointed an interim management team after the electricity distributor accumulated N456.5 billion in market obligations as of May 2026.
The intervention, contained in an order dated August 10, 2026, was signed by NERC Chairman, Dr Musiliu Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye. The Commission said the action was taken under Section 75 of the Electricity Act in response to KAEDC’s deteriorating financial position, persistent market defaults and failure to meet key operational and investment obligations.
NERC said KAEDC owed N415.5 billion to Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion to the Nigerian Independent System Operator (NISO), while its other non-market liabilities stood at N14.26 billion.
The regulator said N118.6 billion of the market debt was accumulated in less than two years under ASI Engineering Ltd, which assumed operational control of the DisCo in June 2024 after receiving conditional regulatory approval in January of that year.
The financial deterioration was also reflected in KAEDC’s 2025 performance. According to NERC, the company settled only 41.93 per cent of its adjusted market invoices during the year, leaving a market shortfall of N46.71 billion.
The Commission said the company’s Aggregate Technical, Commercial and Collection (ATC&C) losses rose to 71.88 per cent, while only 28.2 per cent of the electricity received by the DisCo was successfully billed to customers.
Metering coverage also remained low, ranging between 33.26 per cent and 35.54 per cent despite interventions by NERC and the Federal Government.
Investment performance fell significantly below regulatory requirements. NERC said KAEDC invested N2.48 billion in capital expenditure in 2025 against a minimum requirement of N24.51 billion, representing an execution rate of about 10 per cent.
The regulator described the situation as a serious breach of market rules, citing persistent payment defaults, weak governance and failure to meet minimum investment obligations.
The latest intervention follows an earlier ownership crisis at KAEDC involving North West Power Limited, which acquired a 60 per cent stake in the DisCo during the 2013 electricity privatisation.
NERC began a licence revocation process involving the previous investor in 2023 before ASI Engineering emerged as the next core investor. ASI received conditional regulatory approval in January 2024 and assumed operational control in June that year.
However, NERC said critical conditions attached to ASI Engineering’s takeover, including the provision of payment guarantees to NBET and NISO, remained unfulfilled during its period of control.
Under the new arrangement, NERC has appointed a six-month interim management team to oversee KAEDC while a new ownership structure is developed.
Dr Abubakar Hashidu has been appointed Interim Managing Director and Chief Executive Officer, while Dr Abdullahi Garba will serve as Chairman. Engr Francis Agoha has been appointed Special Director, with Mr Ayodeji Gbeleyi representing the Bureau of Public Enterprises.
NERC has also mandated the African Export-Import Bank (Afreximbank) to lead a transparent, market-driven process for identifying a new core investor for KAEDC within 12 months.
The process is expected to cover transaction structuring, governance design, investor engagement, bid evaluation and execution of transfer agreements, subject to regulatory approvals.
Meanwhile, NERC has ordered a 90-day reconciliation of KAEDC’s liabilities involving the interim management, NBET, NISO, BPE and other creditors.
The Commission said the exercise would establish the company’s outstanding obligations and provide a basis for a structured debt-resolution framework.
To prevent further deterioration, the interim management has been barred from taking on new borrowing, disposing of assets, entering related-party transactions or changing senior management without prior regulatory approval.
Despite the financial challenges, NERC directed the interim team to continue electricity distribution to customers within KAEDC’s available technical capacity, maintain applicable service standards, improve operational efficiency and strengthen consumer protection during the transition.
