NERC dissolves KAEDC board over ₦456.5bn debt

By Imisioluwa Afunmiso

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) over the company’s worsening financial position and its failure to meet key market and operational obligations.

The decision was contained in Interim Order No. NERC/2026/086, issued by the commission on Monday, August 10, 2026, pursuant to Sections 75–79 of the Electricity Act 2023.

NERC stated that KAEDC had incurred more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026, bringing the company’s total market obligations to approximately ₦456.5 billion.

The commission also cited the distribution company’s poor market remittance performance, revealing that KAEDC remitted only 41.93 percent of its adjusted market invoices in 2025.

According to the order, the company recorded Aggregate Technical, Commercial, and Collection (ATC&C) losses of 71.88 percent, while its capital investment stood at ₦2.48 billion against a required investment of ₦24.51 billion.

NERC further disclosed that customer metering coverage within KAEDC’s franchise area remained below 36 percent, underscoring persistent challenges in revenue collection and service delivery.

Following the dissolution of the board, the commission constituted an interim board of special directors to oversee the affairs of the company.

Dr. Abdullahi Garba was appointed chairman of the interim board, while Dr. Abubakar Umar Hashidu was appointed administrator for an initial six-month period.

NERC also announced a 12-month competitive process for the selection of a replacement core investor, with Afreximbank expected to coordinate the process.

The regulatory intervention is intended to address the company’s financial and operational challenges while maintaining stability in electricity distribution across its franchise area.

The commission assured that electricity distribution services in areas covered by KAEDC would continue without interruption during the transition.

This development represents a significant regulatory intervention in the electricity distribution segment, coming against the backdrop of persistent liquidity, infrastructure, and revenue-collection challenges across Nigeria’s electricity market.