NERC Dissolves Kaduna Electricity Board Over N456.5bn Debt Crisis

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) over the company’s N456.5 billion cumulative market obligations and prolonged financial troubles. The regulator appointed an interim board of special directors and ordered a transparent process to select a new core investor for the struggling utility.

The decision, contained in Order No. NERC/2026/086, took effect on Monday, 10 August 2026, following an inquiry and consultations with key stakeholders, including the Bureau of Public Enterprises (BPE). NERC said the intervention became necessary due to KAEDC’s prolonged regulatory and market defaults, inadequate investment, and weak operational performance.

According to the commission, KAEDC’s cumulative market debt stood at approximately N456.5 billion as of May 2026, comprising N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion due to the Nigerian Independent System Operator. The company also carried an additional N14.26 billion in non-market statutory obligations. Since ASI Engineering Limited took over operations in June 2024, KAEDC had accrued more than N118.6 billion in fresh market debt.

NERC stated: “The commission, following its inquiry and consultation undertaken with key industry stakeholders including the Bureau of Public Enterprises, finds that Kaduna Electricity Distribution Plc is in a grave situation characterised by prolonged regulatory and market default, inadequate investment, weak operational and commercial performance, insufficient assets relative to liabilities, and inability to present a credible pathway to sustainable recovery.”

The utility paid only 41.93 per cent of its adjusted market invoices in 2025, creating a shortfall of roughly N46.71 billion. This poor performance stemmed largely from technical, commercial and collection losses of 71.88 per cent, meaning KAEDC could only account for 28.2 per cent of electricity delivered to customers.

ASI also failed to meet its capital injection commitments, spending just N2.48 billion against a required N24.51 billion — only 10 per cent compliance. Meter coverage remained stagnant between 33.26 per cent and 35.54 per cent throughout ASI’s tenure, despite ongoing government support.

Below is a summary of KAEDC’s key financial figures:

Metric	Figure
Cumulative market debt (May 2026)	N456.5bn
Debt owed to NBET	N415.5bn
Debt owed to NISO	N41bn
New debt accrued since June 2024	N118.6bn+
2025 market shortfall	N46.71bn
Technical/commercial losses (2025)	71.88%
Actual capex vs required (2025)	N2.48bn vs N24.51bn
Federal Government interventions since 2018	N53.79bn

NERC revealed that ASI requested a 24-month extension to stabilise KAEDC’s finances, but the regulator rejected this, citing ASI’s failure to improve performance despite years of control. The commission stated: “The continued underperformance therefore poses material risk to end-use customers, creditors, market stability and continuity of electricity service.”

Acting under Sections 75 to 79 of the Electricity Act 2023, NERC dissolved KAEDC’s board entirely, declaring: “KAEDC’s board of directors is HEREBY DISSOLVED. All directors of KAEDC are removed from office, and the existing board stands dissolved pursuant to section 75 of the EA.”

Seven special directors now form the interim board, led by chairman Dr Abdullahi Garba, alongside Engr Francis Agoha, Mr Aliyy Aliyu, retired Major General Henry Ayamasaowei, Dr Haliru Dikko, Mr Ayodeji Gbeleyi (representing BPE), and Dr Abubakar Umar Hashidu. Dr Hashidu, KAEDC’s incumbent CEO, was also appointed administrator for an initial six-month term to oversee daily operations and safeguard company assets.

NERC has directed Afrexim Bank to coordinate a competitive process for selecting a new core investor, with the process expected to conclude within 12 months, pending NERC approval.

Do you think NERC’s intervention will restore stability to Kaduna’s electricity sector?