NERC dissolves Kaduna DisCo board over N456.5bn debt, appoints administrator

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company (KAEDC) and appointed its Managing Director, Dr Abubakar Umar Hashidu, as administrator for six months. The regulatory action takes effect from August 10, 2026, under Order No. NERC/2026/086.

Debt pile and regulatory breaches

NERC said KAEDC was facing a severe financial and operational crisis, marked by persistent regulatory breaches, weak commercial performance, inadequate investment and liabilities far exceeding its available assets. The DisCo’s cumulative market obligations reached about N456.5 billion as of May 2026.

The debt includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion due to the Nigerian Independent System Operator (NISO). KAEDC also has N14.26 billion in additional statutory and third-party obligations.

According to the regulator, the situation worsened after ASI Engineering Limited assumed control of the company in June 2024. KAEDC accumulated an additional N118.6 billion in market debt by May 2026. NERC said KAEDC and ASI repeatedly failed to provide acceptable payment guarantees required under electricity market rules and did not submit a credible plan to clear the outstanding debts.

Poor remittances and high losses

NERC blamed the weak financial position on poor market remittances and high electricity losses. KAEDC paid only 41.93 per cent of its adjusted market invoices in 2025, resulting in a market shortfall of about N46.71 billion.

Its Aggregate Technical, Commercial and Collection (ATC&C) losses stood at 71.88 per cent during the 2025 review period, further worsening the company’s finances.

The inquiry and consultations with stakeholders, including the Bureau of Public Enterprises (BPE), preceded the action. NERC has now appointed an interim board chaired by Dr Abdullahi Garba, with representatives from the BPE and other industry professionals serving as special directors.

Administrator’s mandate

Hashidu has been appointed a special director and administrator for the initial six-month period. He will oversee daily operations, implement board and NERC directives, protect the company’s assets and records, and manage issues requiring regulatory or board approval.

NERC has directed the administrator to submit a costed 12-month stabilisation plan within 60 days. The plan must address cash flow, debt remittances, revenue collection, metering, energy accounting, loss reduction, service reliability, customer complaints, capital expenditure, procurement and staff obligations.

For electricity consumers in the Kaduna franchise area, the development signals a tougher regulatory stance on DisCo mismanagement. The stabilisation plan will determine whether service reliability improves or tariffs and operational conditions shift in response to the utility’s financial collapse.