The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Kaduna Electricity Distribution Plc board over N456.5bn debt, citing mounting obligations and persistent regulatory and operational failures.
Upon the sacking, NERC replaced the board with an interim governance structure as it moves to facilitate the appointment of a new core investor for the electricity distribution company.
Seven special directors were appointed to the new board, with Abdullahi Garba named chairman.
Other members are Engr Francis Agoha, Aliyy Aliyu, retired Major General Henry Ayamasaowei, Haliru Dikko, Ayodeji Gbeleyi of the Bureau of Public Enterprises and Dr Abubakar Umar Hashidu.
Hashidu, who is the company’s Managing Director and Chief Executive Officer, was also appointed administrator for an initial six-month tenure.
NERC directed the administrator to maintain uninterrupted electricity distribution, oversee the company’s daily operations, safeguard its assets and records, and execute decisions taken by the interim board.
The commission also withdrew the Know-Your-Licensee approvals previously granted to KAEDC’s management team and directed the affected officials to undergo a fresh validation process.
According to the regulator, Kaduna Disco, also known as KAEDC, owed about N456.5bn in outstanding market obligations as of May 2026.
The debt includes N415.5bn owed to the Nigerian Bulk Electricity Trading Plc and another N41bn payable to the Nigerian Independent System Operator.
NERC also said KAEDC accumulated more than N118.6bn in additional market debt after ASI Engineering Limited assumed control of the company in June 2024.
It was gathered that NERC’s action took effect on Monday, August 10, 2026.
The commission blamed the worsening financial position on poor remittances, high electricity losses, insufficient investment and weak commercial performance.
It disclosed that KAEDC remitted only 41.93 per cent of its adjusted market invoices in 2025, resulting in a shortfall of approximately N46.71bn.
The regulator further reported that the distribution company recorded aggregate technical, commercial and collection losses of 71.88 per cent during the year.
This meant KAEDC accounted for only about 28.2 per cent of the electricity supplied to its customers, according to NERC.
Investment performance also fell significantly below regulatory expectations.
NERC said ASI spent approximately N2.48bn on capital projects in 2025, compared with a minimum investment requirement of N24.51bn.
Metering performance remained weak as well, with coverage fluctuating between 33.26 per cent and 35.54 per cent since ASI took control of the company.
NERC said the poor performance persisted despite financial support and regulatory interventions intended to stabilise the Disco.
The commission disclosed that KAEDC received about N6.58bn in regulatory reliefs between January 2024 and May 2026.
It also benefited from approximately N53.79bn in Federal Government interventions since July 2018.
Despite the interventions, NERC said efforts to develop a credible recovery plan with KAEDC’s shareholders and Afrexim Bank failed to deliver the required turnaround.
ASI later requested an additional 24 months to improve cash flow, fund critical investments and restore the company’s capacity to meet its market obligations.
The regulator rejected the request, arguing that ASI had already exercised effective control of KAEDC for more than two years without making significant progress in its financial and operational performance.
NERC warned that allowing the situation to continue could threaten electricity distribution, creditors and the broader stability of Nigeria’s electricity supply industry.
The commission therefore exercised its powers under the Electricity Act 2023 to remove the existing directors and establish an interim governance arrangement.
Meanwhile, Afrexim Bank was instructed to begin an open and competitive process for the selection of a replacement core investor for Kaduna Disco.
NERC said the successful investor must be presented to the commission for approval, with the selection process expected to be completed within 12 months unless the regulator grants an extension.
The commission said the intervention was necessary to address KAEDC’s financial deterioration and protect the long-term stability of electricity distribution within its franchise area.