The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) and assumed regulatory control of the company over its deteriorating financial and operational condition.

The intervention, which took effect on August 10, 2026, is contained in Order No. NERC/2026/086, issued pursuant to Sections 75 to 79 of the Electricity Act 2023. NERC said the action was necessary to protect service continuity and prevent risks to the stability of the electricity market.

According to the Commission, KAEDC’s cumulative market debt stood at about ₦456.5 billion as of May 2026. The debt comprises approximately ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and ₦41 billion owed to the Nigerian Independent System Operator (NISO), in addition to other statutory obligations of ₦14.26 billion.

NERC said KAEDC’s financial and operational performance had remained poor, noting that the company paid only 41.93 per cent of its adjusted market invoices in 2025, leaving a shortfall of ₦46.71 billion. Its Aggregate Technical, Commercial and Collection (ATC&C) losses stood at 71.88 per cent, while metering coverage ranged between 33.26 and 35.54 per cent.

‎The Commission also said KAEDC’s actual capital expenditure in 2025 was ₦2.48 billion, compared with a required ₦24.51 billion. It added that since ASI Engineering Limited assumed control of the company in June 2024, KAEDC had accumulated additional market debt of more than ₦118.6 billion.

‎NERC said ASI Engineering failed to meet key conditions attached to its takeover, including providing credible bank guarantees to NBET and NISO, submitting a payment plan for outstanding liabilities and injecting the required capital. It said ASI’s request for a 24-month extension to stabilise the company was rejected after a June 11, 2026 meeting involving NERC, the Bureau of Public Enterprises (BPE), Afreximbank and Fidelity Bank.

As part of the intervention, NERC appointed an interim board of special directors chaired by Dr. Abdullahi Garba, while the incumbent Managing Director, Dr. Abubakar Umar Hashidu, was appointed Administrator for an initial six-month period. The Administrator is required to submit a 12-month costed stabilisation plan within 60 days, focusing on revenue collection, metering, loss reduction and liability management.

The Commission also directed Afreximbank to lead a transparent 12-month process to identify a new core investor for KAEDC, while a liability reconciliation and management plan involving NBET, NISO and other creditors must be submitted within 90 days. NERC said the intervention is intended to protect consumers and restore the company’s viability, warning that failure to improve performance could lead to licence revocation and the sale of the undertaking to the highest bidder.