The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) with effect from August 10, 2026, following what it described as severe financial insolvency and prolonged regulatory and market default.

History

The commission, in an Interim Order, No. NERC/2026/086, issued pursuant to sections 75 to 79 of the Electricity Act 2023, said KAEDC had accumulated more than N118.6 billion in additional market debt under ASI Engineering Limited as of May 2026, taking its total market obligations to approximately N456.5 billion.

NERC said the Disco remitted only 41.93 per cent of its adjusted market invoices in 2025, while its Aggregate Technical, Commercial and Collection (ATC&C) losses stood at 71.88 per cent.

The commission also noted that KAEDC invested just N2.48 billion against a required capital investment of N24.51 billion, while customer metering coverage remained below 36 per cent.

To maintain operational stability and uninterrupted electricity distribution across KAEDC’s franchise area, NERC constituted an interim board of special directors and appointed an administrator for an initial six-month period.

The newly appointed board will be headed by Dr Abdullahi Garba, as Chairman.

NERC also said Afrexim Bank would coordinate a transparent 12-month competitive process to secure a competent replacement core investor for KAEDC. (Nigerian Tribune)