The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) over accumulated market obligations estimated at ₦456.5 billion and the company’s prolonged financial and operational difficulties.
The regulator has also appointed an interim board of special directors and ordered the commencement of a transparent process to identify a new core investor for the electricity distribution company.
The decisions were contained in Order No. NERC/2026/086, titled “Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023,” which took effect on Monday, August 10, 2026.
NERC said the intervention followed an extensive inquiry and consultations with key industry stakeholders, including the Bureau of Public Enterprises.
According to the commission, the action became necessary because of KAEDC’s persistent regulatory and market defaults, inadequate investment, weak operational performance and deteriorating commercial position.
NERC disclosed that KAEDC’s cumulative market obligations since privatisation stood at approximately ₦456.5 billion as of May 2026.
The debt comprises about ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and another ₦41 billion owed to the Nigerian Independent System Operator.
The regulator also identified an additional ₦14.26 billion in non-market statutory and third-party obligations.
NERC said KAEDC’s financial position had worsened since ASI Engineering Limited assumed control of the company in June 2024, with the company accumulating more than ₦118.6 billion in additional market debt by May 2026.
The commission described the utility as being in a “grave situation,” citing prolonged regulatory and market defaults, insufficient investment, poor operational and commercial performance, inadequate assets relative to liabilities and the absence of a credible recovery plan.
NERC further disclosed that KAEDC paid only 41.93 per cent of its adjusted market invoices in 2025, resulting in a market shortfall of approximately ₦46.71 billion during the year.
The poor remittance performance was attributed partly to the company’s high aggregate technical, commercial and collection losses, which reached 71.88 per cent in 2025.
According to NERC, the losses meant that KAEDC was able to account for only about 28.2 per cent of the electricity supplied to it and subsequently delivered to customers during the period under review.
The commission also faulted ASI Engineering for failing to meet its capital injection obligations required to recapitalise the company.
It said KAEDC recorded approximately ₦2.48 billion in capital expenditure in 2025, against a minimum requirement of ₦24.51 billion. This represented only about 10 per cent of the expected investment.
NERC further noted that KAEDC’s meter coverage remained between 33.26 per cent and 35.54 per cent since ASI took over operations, despite various interventions aimed at improving metering across distribution companies.
The regulator added that the company’s financial challenges persisted despite receiving approximately ₦6.58 billion in regulatory derogations between January 2024 and May 2026.
KAEDC had also benefited from aggregate Federal Government intervention funds estimated at ₦53.79 billion since July 2018, according to NERC.
