| Regulator dissolves company’s board, appoints interim administrator
BY NSE ANTHONY-UKO, Abuja AND CHIKA IZUORA, Lagos
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDCO) and appointed an interim administrator for the second time in 30 months over the DisCo’s failure to meet its market obligations, rising debt and continued operational underperformance.
The intervention, which took effect on Monday, August 10, 2026, followed KAEDCO’s cumulative market obligations of N456.5 billion as of May 31, 2026.
Recall that NERC dissolved KAEDCO’s board in January 2024 after issuing Order No. NERC/2024/001, removing the existing directors, appointing an administrator and special directors, and placing the company under direct regulatory supervision.
In the latest intervention, the Commission appointed KAEDCO’s managing director and chief executive officer, Dr Abubakar Umar Hashidu, as administrator and chairman of the interim board for an initial six-month period, subject to review. The Bureau of Public Enterprises is represented on the board by Ayodeji A. Gbeleyi.
NERC said the intervention was necessary to preserve KAEDCO as a going concern, maintain electricity distribution in its franchise area and protect customers while a new core investor is sought.
According to the order, KAEDCO’s N456.5 billion market obligations comprised N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc, N41 billion owed to the Nigerian Independent System Operator and N14.26 billion in other statutory and third-party obligations.
NERC also said KAEDCO accumulated more than N118.6 billion in additional market debt under ASI Engineering Limited as of May 2026.
The Commission said the DisCo remitted only 41.93 per cent of its adjusted market invoices in 2025, while its Aggregate Technical, Commercial and Collection losses stood at 71.88 per cent.
Its investment performance was also poor, with only N2.48 billion invested against a required capital investment of N24.51 billion. Customer metering coverage remained below 36 per cent.
The latest intervention followed a series of regulatory warnings dating back to 2023.
In May 2023, NERC notified KAEDCO of its intention to cancel the company’s licence over its failure to meet market obligations and comply with the terms of its distribution licence. At the time, the Commission cited a debt of about N51 billion and gave the company time to address the breaches.
NERC subsequently dissolved the board in January 2024, saying the action followed the company’s persistent failure to meet its market obligations, secure adequate financing and present a credible plan to restore financial and operational viability.
The intervention was intended to stabilise the company and facilitate the entry of a new core investor. NERC also introduced a performance-monitoring framework covering revenue collection, losses, metering, connections, network reliability and customer service.
In July 2024, ASI Engineering Limited emerged as a new investor after acquiring a 60 per cent equity stake in Kaduna Electric. The transaction was expected to inject fresh capital and improve the DisCo’s performance, but its subsequent debt accumulation and operational deficiencies led to the renewed intervention.
Under the latest order, NERC is seeking a technically competent and financially capable replacement core investor through a transparent and competitive process.
Afreximbank is expected to coordinate the process, which is to be completed within 12 months.
NERC has also restricted changes to the company’s ownership and governance structure during the transition.
The Corporate Affairs Commission has been notified not to register changes in KAEDCO’s shareholding, directorship or constitutional records without the Commission’s prior written approval.
