Odimmegwa Johnpeter/Abuja
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) over mounting debts, poor financial performance and failure to meet key operational targets.
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) over mounting debts, poor financial performance and failure to meet key operational targets.
NERC announced the decision in a statement on Monday, saying it took effect on August 10, 2026, pursuant to Sections 75–79 of the Electricity Act 2023.
According to the commission, KAEDC accumulated more than ₦118.6 billion in additional indebtedness under ASI Engineering Limited as of May 2026, pushing its total exposure in the Nigerian electricity market to approximately ₦456.5 billion.
NERC also cited the company’s weak operational performance as a major reason for the intervention.
The commission said KAEDC paid only 41.93 per cent of its electricity market invoices in 2025, while its aggregate energy losses stood at 71.88 per cent.
It added that the company invested just ₦2.48 billion during the period, far below the ₦24.51 billion investment requirement.
Metering performance was also described as inadequate, with fewer than 36 per cent of KAEDC customers having electricity meters, leaving a significant number of consumers without accurate metering.
To prevent disruption to electricity services, NERC has constituted an interim board comprising special directors to oversee the company during the transition.
Dr Abdullahi Garba will serve as chairman of the interim board, while Dr Abubakar Umar Hashidu has been appointed Administrator for an initial six-month period.
The commission said Afrexim would commence a 12-month open and competitive process to identify a new and capable investor for KAEDC.
Other members of the interim board are Francis Agoha, Aliyu Aliyu, Henry Ayamasaowei and Haliru Dikko, while Ayodeji A. Gbeleyi will represent the Bureau of Public Enterprises (BPE).
NERC said the interim board would be responsible for managing and supervising KAEDC throughout the transition, while complying with the commission’s directives, the Electricity Act 2023 and the terms of the company’s licence.
The regulator assured electricity consumers in Kaduna and other areas served by KAEDC that the intervention would not interrupt electricity distribution.
It said electricity supply and distribution operations would continue across the company’s franchise areas despite the dissolution of the previous board.
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