By Anthony Otaru, Abuja
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Board of Directors, Kaduna Electricity Distribution Plc (KAEDC) following its failure to clear a massive N456.5 billion market debt and operational distress.
The regulatory intervention, detailed in Order No: NERC/2026/086 signed on August 10, 2026, by NERC Chairman, Dr. Musiliu Oseni and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye, immediately removes all directors and appoints an interim board alongside an Administrator to run the utility.
According to the regulatory document, KAEDC’s debt profile includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion owed to the Nigerian Independent System Operator (NISO) as of May 2026. The firm also accumulated N14.26 billion in non-market statutory obligations.
The core investor, ASI Engineering Limited, which took over operations in June 2024 with technical partner Akanksha Power and Infrastructure Limited (APIL), accrued an additional debt exceeding N118.6 billion within two years.
NERC disclosed that during 2025, KAEDC remitted a paltry 41.93 per cent of its adjusted market invoices, resulting in a N46.71 billion shortfall. The distribution company also suffered an Aggregate Technical, Commercial, and Collection (ATC&C) loss of 71.88 per cent, delivering value on only 28.2 per cent of the energy received. Furthermore, ASI recorded a dismal 10 per cent Capital Expenditure performance, spending just N2.48 billion against a required minimum of N24.51 billion. Metering coverage remained stalled between 33.26 and 35.54 per cent.
Exercising its powers under Sections 75–79 of the Electricity Act 2023, the Commission constituted a new interim board chaired by Dr. Abdullahi Garba. Other appointed special directors include Engr. Francis U. Agoha, Aliyu E. Aliyu, Major General Henry E. Ayamasaowei (rtd), Dr. Haliru Dikko, and Mr. Ayodeji A. Gbeleyi, who represents the Bureau of Public Enterprises (BPE).
The incumbent Managing Director, Dr. Abubakar Umar Hashidu, has been appointed as Administrator for an initial six-month term to lead daily operations.
Meanwhile, NERC has withdrawn all “Know Your Licensee” (KYL) approvals previously issued to KAEDC’s management team, ordering affected staff to undergo revalidation.
Afreximbank will lead a competitive process to identify a new core investor within 12 months.
