By Bunmi Aduloju

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc over the company’s N456.5 billion cumulative market obligations and prolonged financial and operational challenges.

The regulator dissolved the board in an order on “Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023”, which took effect on Monday, August 10, 2026.

NERC, therefore, formally issued an interim order for regulatory intervention in the DisCo.

“Pursuant to sections 75-79 of the Electricity Act 2023 [EA 2023) the board of directors of KAEDC is dissolved with immediate effect. The Corporate Affairs Commission (CAC) has been duly notified to restrict unauthorised changes to company records during this special transition period,” the order reads.

“The Commission’s decision was informed by a review which found that ASI Engineering Limited, the core investor, accumulated over N118.6 billion in additional market debt by May 2026 while failing to provide the required bank guarantees, contributing to total market obligations of approximately 456.5 billion.

“The review also found that KAEDC remitted only 41.93% of its adjusted market invoices in 2025, recorded Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88%, invested only N2.48 billion against a capital requirement of N24.51 billion and maintained customer metering coverage of less than 36%.”

According to the commission, these conditions, coupled with the absence of a credible recovery plan, informed its decision to intervene in order to protect consumers, preserve service continuity, and safeguard the stability of the electricity market.

NERC RESTRUCTURES KADUNA DISCO

Consequently, the commission said a high-powered interim board of special directors had been constituted, led by Abdullahi Garba as chairman.

Subject to review by the commission, Abubakar Hashidu was appointed administrator for an initial six-month term to manage the company’s daily operations and ensure service continuity.

Other members of the interim board are Francis Agoha, Aliyu Aliyu, Henry Ayamasaowei and Haliru Dikko, who will serve as special directors, while Ayodeji A. Gbeleyi will represent the Bureau of Public Enterprises (BPE).

NERC said the know-your-licensee (KYL) approvals issued to all members of KAEDC’s management team have been withdrawn.

“All management staff of KAEDC whose KYL approvals have been:withdrawn by this Order are hereby directed to present themselves for KYL revalidation by the Commission,” the order reads.

“Africa Export-lmport Bank (Afrexim), in coordination with NERC, will lead a transparent, 12-month competitive process to secure a financially capable and technically competent replacement core investor.”

The commission reassured all electricity consumers and market participants “across the KAEDC franchise area that normal electricity distribution services will continue safely and uninterrupted during this transition period”.

Source: TheCable