Why NERC dissolved KAEDC board
…cites ₦456.5bn debt, 71.88% operational losses
By Firdaus Jibril
The Nigerian Electricity Regulatory Commission (NERC) has given reasons why it dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) and inaugurated an Interim Board of Special Directors to take over the utility.
The regulator cited a cumulative market obligations of about ₦456.5 billion and Aggregate Technical, Commercial, and Collection (ATC&C) losses of 71.88 percent.
NERC disclosed the figures in its Order No. NERC/2026/086 on the regulatory intervention in KAEDC, which took effect on August 10, 2026.
The Commission said KAEDC’s cumulative market obligations stood at approximately ₦456.5 billion as of May 2026, comprising ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and ₦41 billion owed to the Nigerian Independent System Operator (NISO).
The company also had other non-market statutory and third-party obligations of about ₦14.26 billion.
NERC stated that since ASI Engineering Limited took over operations of KAEDC in June 2024, the company had accumulated an additional market debt of more than ₦118.6 billion as of May 2026.
The regulator noted that KAEDC’s weak financial position was reflected in its market remittance performance.
According to the order, the DisCo paid only 41.93 percent of its adjusted market invoices in 2025, leaving a market shortfall of approximately ₦46.71 billion.
NERC also reported ATC&C losses of 71.88 percent during the 2025 review period, meaning the company was able to account for only about 28.2 percent of the energy it received and delivered to end-use customers.
The company’s investment performance was also below the regulatory requirement.
The commission further revealed that KAEDC recorded actual capital expenditure of approximately ₦2.48 billion in 2025, compared with a minimum capital expenditure provision of ₦24.51 billion, representing only 10 percent performance.
Metering coverage also remained low, with the company’s 2025 metering rate standing at 34.42 percent.
The Commission said the poor performance persisted despite regulatory and government interventions.
It disclosed that about ₦6.58 billion in regulatory derogations had been granted between January 2024 and May 2026, while aggregate Federal Government intervention disbursements to KAEDC since July 2018 stood at approximately ₦53.79 billion.
The commission added that the continued underperformance posed risks to customers, creditors, market stability, and the continuity of electricity service.
Against this background, the Commission dissolved KAEDC’s previous board and appointed an interim board of special directors to oversee the company during the transition.
The new board, chaired by Dr. Abdullahi Garba, has an initial one-year mandate, while Dr. Abubakar Umar Hashidu was appointed Administrator for an initial six-month period.
NERC has directed the Administrator to submit a costed 12-month stabilization plan within 60 days of the commencement of the intervention.
The plan must cover cash-flow controls, market remittances, collections, metering, energy accounting, loss reduction, service reliability, customer complaints, capital expenditure, procurement, staff obligations, and legacy liabilities.
It must also set monthly milestones, identify responsible officers and funding sources, and establish measurable outcomes.
The Commission further directed the Administrator to submit monthly performance reports, while the interim board is required to submit quarterly reports covering areas including energy received and billed, collections, remittances, ATC&C losses, metering, service availability, capital expenditure, and progress on the stabilization plan.
NERC said the intervention is intended to preserve KAEDC as a going concern and facilitate a transparent transition to a credible new core investor within 12 months.