With reference to severe financial problems, high electricity losses, low investment, and poor customer metering, the Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC).
The decision took effect on Monday, 10 August, 2026, under an Interim Order issued by NERC pursuant to sections 75–79 of the Electricity Act 2023.
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NERC said KAEDC had accumulated more than ₦118.6 billion in market debt under ASI Engineering Limited by May 2026. This brought the company’s total market obligations to about ₦456.5 billion.
The regulator also said the company met only 41.93 per cent of its adjusted market invoices in 2025. Its ATC&C losses, meaning electricity lost through technical and commercial problems, stood at 71.88 per cent.
Low metering and investment
One of the figures cited by NERC was KAEDC’s customer metering level, which stood below 36 per cent.
This means fewer than four out of every 10 customers in the company’s service area had meters, based on the regulator’s figure.
NERC also said KAEDC invested only ₦2.48 billion in 2025 against a capital requirement of ₦24.51 billion. The gap between the two figures was more than ₦22 billion.
The figures were part of the reasons given by NERC for dissolving the board and placing the company under interim management.
The regulator has now appointed an interim board of Special Directors to oversee the company. Dr Abdullahi Garba will chair the board, while Dr Abubakar Umar Hashidu has been appointed Administrator for an initial six-month term.
NERC said the interim arrangement is intended to keep electricity distribution services running and maintain operational stability.
It also named Francis Agoha, Aliyu Aliyu, Henry Ayamasaowei and Haliru Dikko as Special Directors.
Ayodeji A. Gbeleyi will represent the Bureau of Public Enterprises on the interim board.
The regulator said the interim board would exercise governance and oversight powers under its order, written directions from NERC, the Electricity Act and the company’s licence obligations.
Any vacancy or replacement on the interim board will be decided solely by NERC, the agency said.
The board dissolution came after a period in which KAEDC’s financial obligations had reached about ₦456.5 billion.
The company’s market debt under ASI Engineering Limited alone stood at more than ₦118.6 billion by May 2026.
NERC also pointed to the company’s low payment level in 2025. KAEDC remitted 41.93 per cent of its adjusted market invoices during the year.
Its 71.88 per cent ATC&C losses also showed that a large share of electricity handled by the company was lost through technical and commercial problems.
Investment was another issue cited by the regulator. KAEDC spent ₦2.48 billion against a required capital investment of ₦24.51 billion.
Customer metering was also below 36 per cent, leaving most customers without meters based on NERC’s figure.
NERC said Afrexim will coordinate a 12-month competitive process to find a replacement core investor for KAEDC.
The process is expected to provide a new investor for the distribution company after the interim period.
NERC said electricity distribution services within KAEDC’s franchise area would remain safe and uninterrupted.
The interim board will operate under NERC’s supervision as the regulator manages the company’s next stage.
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