Regulator appoints interim board and administrator as KAEDC struggles with heavy debt, 71.88% losses and weak investment..NERC Dissolves Kaduna Disco Board Over ₦456.5bn Market Debt
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) following what it described as severe financial insolvency and worsening operational performance.
The commission issued an Interim Order, NERC/2026/086, dissolving the board with effect from August 10, 2026, under Sections 75–79 of the Electricity Act 2023.
NERC said KAEDC accumulated more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026, pushing the distributor’s total market obligations to approximately ₦456.5 billion.
The regulator said the intervention was necessary to address the company’s financial condition, strengthen governance and protect electricity supply across its franchise area.
KAEDC remitted less than half of adjusted invoices
According to NERC, KAEDC’s financial and operational indicators had deteriorated significantly.
The company remitted only 41.93 per cent of its adjusted market invoices in 2025, meaning it paid less than half of the amounts billed to it under the electricity market settlement framework.
Its Aggregate Technical, Commercial and Collection (ATC&C) losses stood at 71.88 per cent, while its investment in the distribution network remained substantially below the required level.
NERC said KAEDC invested just ₦2.48 billion, compared with a capital expenditure requirement of ₦24.51 billion.
Customer metering coverage was also below 36 per cent, leaving a large proportion of customers without adequate metering.
The combination of high losses, weak collections, limited investment and mounting market obligations placed additional pressure on the company’s ability to operate sustainably.
NERC appoints interim management
To maintain stability during the transition, NERC has constituted an interim board of special directors.
The board will be chaired by Abdullahi Garba, while Abubakar Umar Hashidu has been appointed Administrator for an initial six-month period.
The regulator also named Francis Agoha, Aliyu Aliyu, Henry Ayamasaowei and Haliru Dikko as special directors.
Ayodeji A. Gbeleyi will represent the Bureau of Public Enterprises (BPE) on the interim board.
NERC said the interim board would exercise governance and oversight responsibilities subject to the terms of its order, directives issued by the commission, the Electricity Act and KAEDC’s licence obligations.
Any vacancy or replacement on the interim board will be determined by NERC.
Afrexim to coordinate search for new investor
Beyond the immediate intervention, the regulator said the transition would include a fresh search for a replacement core investor.
According to NERC, Afreximbank will coordinate a transparent 12-month competitive process aimed at securing a competent investor for KAEDC.
The process is expected to provide a pathway for the distribution company to move beyond its current financial difficulties and attract the capital required to improve its network and operations.
The decision comes against the backdrop of broader efforts to improve the financial sustainability of Nigeria’s electricity distribution companies, many of which have faced challenges involving market debts, energy losses, inadequate investment and weak collection rates.
NERC assures customers of uninterrupted supply
Despite the major governance changes, NERC said customers within KAEDC’s franchise area should not expect an interruption in electricity distribution as a result of the regulatory intervention.
The commission assured that electricity distribution services across the Kaduna Disco franchise area would remain safe and uninterrupted.
The immediate focus, therefore, is expected to be maintaining day-to-day operations while the interim management works on stabilising the company and the process for securing a new core investor gets underway.
NERC’s action represents one of the most significant regulatory interventions yet in the distribution segment, with the commission effectively placing KAEDC’s governance structure under a new interim arrangement while the company confronts hundreds of billions of naira in market obligations.
The scale of the debt and the distributor’s weak operational indicators also underline the financial pressures facing Nigeria’s power sector, where improving electricity supply increasingly depends not only on generation but on the ability of distribution companies to collect revenue, reduce losses and invest in infrastructure.
