NERC takes over Kaduna DisCo, dissolves board over N456.5 billion debt
By Aboki Forex —
The Nigerian Electricity Regulatory Commission has taken over Kaduna Electricity Distribution Company and dissolved its board over a N456.5 billion debt crisis. The regulator issued the intervention order on 10 August 2026 to preserve the utility as a going concern and keep electricity flowing across its network.
Regulator dissolves board, appoints administrator
NERC said it acted under sections 75 to 79 of the Electricity Act. The board of directors has been dissolved, special directors appointed as an interim board, and the current Managing Director retained as Administrator for an initial six-month period. Regulatory approvals previously granted to the management team were also withdrawn.
The commission stated: “Further to the meeting of 11 June 2026, the Commission resolved to exercise its powers conferred under sections 75 – 79 of the EA to dissolve the board of directors of KAEDC by intervening to preserve the undertaking as a going concern and achieve a transparent transition to a credible core investor within 12 months.”
NERC said it will now run a supervised process to find a technically competent and financially capable replacement core investor within the next 12 months.
Debt crisis deepens under ASI Engineering
Kaduna DisCo’s cumulative market obligations hit N456.5 billion as of 31 May 2026. That includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion owed to the Nigerian Independent System Operator. Another N14.26 billion covers other statutory and third-party obligations.
The regulator said the utility’s position worsened after ASI Engineering Limited took over as core investor in June 2024. Within two years, the company added N118.6 billion to its market debt.
NERC also faulted Kaduna DisCo and its core investor for failing to provide acceptable payment guarantees required under market rules. The company paid only 41.93% of its adjusted market invoices in the review period ending 31 December 2025, leaving a N46.71 billion payment shortfall.
The utility’s Aggregate Technical, Commercial and Collection losses stood at 71.88%, meaning it could account for only 28.2% of the electricity it received and delivered to customers during the 2025 review period.
Previous red flags
NERC approved ASI Engineering’s acquisition of a 60% equity stake in Kaduna Electricity Company Plc in July 2024. But the utility soon ran into trouble.
In August 2024, the Kaduna State Internal Revenue Service sealed the company’s office over alleged unpaid tax liabilities of about N600 million. That same month, Kaduna DisCo disconnected electricity supply to the Kaduna State Government House over an outstanding debt of N2.9 billion.
NERC’s latest action marks one of the clearest cases of a distribution company placed under direct regulatory restructuring. For consumers and businesses in Kaduna DisCo’s territory, the takeover signals that NERC is moving to stabilise supply while hunting for a credible investor.