NERC dissolves Kaduna Electricity Distribution Plc board over N456.5bn debt

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) due to severe financial and operational instability. The intervention, effective August 10, 2026, follows the discovery of cumulative market obligations totaling approximately N456.5 billion as of May 2026. This debt includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion due to the Nigerian Independent System Operator.

NERC noted that since ASI Engineering Limited assumed control in June 2024, the company accrued an additional N118.6 billion in market debt. The regulator cited several critical failures, including a 71.88 per cent rate of aggregate technical, commercial, and collection losses, and a significant capital expenditure shortfall where only N2.48 billion was invested against a required N24.51 billion. Additionally, customer metering coverage remained below 36 per cent.

An interim board of special directors has been established, with Abdullahi Garba appointed as chairman and Abubakar Hashidu as administrator for an initial six-month term. Afreximbank will coordinate a 12-month competitive process to select a new core investor for the utility.