NERC Ousts Kaduna DisCo Board Amidst ₦456.5 Billion Debt Crisis
The Nigerian Electricity Regulatory Commission (NERC) has taken decisive regulatory action, dissolving the board of Kaduna Electricity Distribution Company (KAEDC) and appointing its Managing Director/Chief Executive Officer, Dr. Abubakar Umar Hashidu, as administrator for an initial six-month term. This intervention, detailed in Order No. NERC/2026/086, took effect on August 10, 2026, following extensive consultations with industry stakeholders, including the Bureau of Public Enterprises (BPE).
NERC cited KAEDC’s “grave situation” as the catalyst for this regulatory overhaul. The company faces a litany of challenges, including prolonged regulatory and market defaults, insufficient investment, weak operational and commercial performance, and a precarious balance sheet with assets falling short of liabilities. Crucially, there is an absence of a viable strategy for sustainable recovery. As of May 2026, KAEDC’s cumulative market obligations had ballooned to approximately ₦456.5 billion. This substantial debt comprises ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and ₦41 billion to the Nigerian Independent System Operator (NISO), alongside ₦14.26 billion in non-market statutory and third-party obligations.
Further compounding the issue, KAEDC incurred an additional ₦118.6 billion in market debt between June 2024 and May 2026, a period following the takeover of its operations by ASI Engineering Limited. NERC highlighted the persistent failure of both ASI and KAEDC to provide acceptable payment bank guarantees to NBET and NISO, a direct contravention of the Vesting Contract and Market Rules of the Nigerian Electricity Supply Industry. The core investor also failed to present a credible plan for addressing these outstanding liabilities.
The DisCo’s poor remittance record was a significant factor, with KAEDC remitting only 41.93 per cent of its adjusted market invoices in 2025, leading to a market shortfall of approximately ₦46.71 billion. This underperformance is directly linked to KAEDC’s high Aggregate Technical, Commercial, and Collection (ATC&C) losses, which stood at a staggering 71.88 per cent in 2025. This means the company could only account for 28.2 per cent of the energy received and delivered to end-use customers.
ASI’s capital expenditure performance also drew NERC’s ire. The investor failed to meet its capital injection commitments, recording actual capital expenditure of only ₦2.48 billion in 2025 against a minimum provision of ₦24.51 billion, a mere 10 per cent of the required CAPEX. Furthermore, KAEDC’s metering performance was described as “abysmally low,” with meter coverage for end-use customers stagnating between 33.26 per cent and 35.54 per cent since ASI’s control.
NERC’s conditional no-objection for ASI’s proposed 60 per cent equity stake acquisition in KAEDC, in partnership with Akanksha Power and Infrastructure Limited, was subject to stringent conditions, including demonstrating operational capacity, providing a substantive technical support proposal, and a compliance plan for key performance indicators. ASI’s failure to fully comply with these requirements led to the dissolution of the board.
An interim board has been appointed, chaired by Dr. Abdullahi Garba, with special directors including Engr. Francis U. Agoha, Mr. Aliyu E. Aliyu, Major General Henry E. Ayamasaowei (rtd), Dr. Haliru Dikko, and Mr. Ayodele A. Gbeleji representing the BPE. Dr. Hashidu, as administrator, will oversee daily operations, implement board and NERC directives, safeguard assets, and manage matters requiring approval. NERC has also withdrawn Key Yardstick Licence approvals for KAEDC management and imposed restrictions on major financial and corporate decisions during the transition. Dr. Hashidu is tasked with submitting a 12-month stabilisation plan within 60 days, addressing critical areas such as cash-flow, remittances, metering, and loss reduction. The intervention period will conclude upon the transfer of KAEDC to a new core investor or further regulatory action.
