The Nigerian Electricity Regulatory Commission (NERC) said it has begun a reset of the Kaduna Electricity Distribution Company (KAEDC) after inaugurating a five‑member interim board and naming an interim administrator.
NERC told journalists the Interim Board of Special Directors was sworn in on Wednesday, August 19, 2026, “to drive the reset of the distribution company.” The commission said Dr Abdullahi Garba will chair the board for an initial one‑year period, while Abubakar Umar Hashidu was appointed Interim Administrator for an initial six‑month period.
The regulator said the appointments followed its August 10 intervention order that dissolved KAEDC’s previous board after the DisCo repeatedly “failed to meet market obligations and other prescribed performance indicators.” NERC said the action was taken under Sections 75–79 of the Electricity Act 2023.
Following the inauguration, NERC officials, members of the new board and KAEDC management visited the Headquarters of One Division of the Nigerian Army in Kaduna. The delegation was received by the general officer commanding and senior officers of the Division, the commission said.
The team also visited the Nigerian Defence Academy, where the Commandant and principal officers received them.
NERC said the intervention became necessary because KAEDC’s financial and operational performance had deteriorated sharply. The regulator told reporters the company’s cumulative market obligations reached about N456.5 billion as of May 31, 2026, including N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion owed to the Nigerian Independent System Operator, with an additional N14.26 billion in statutory and third‑party obligations.
The commission said the DisCo’s debt worsened after ASI Engineering Limited assumed operational control in June 2024, with an added N118.6 billion in market debt between that takeover and May 2026.
NERC said both the company and its core investor repeatedly failed to provide acceptable payment guarantees required by market rules and did not present a credible plan to clear the liabilities.
NERC also cited weak market remittance and operational indicators. The regulator said KAEDC paid only 41.93 per cent of its adjusted market invoices during the 2025 review period, creating a N46.71 billion market payment shortfall, and recorded high technical, commercial and collection losses alongside inadequate investment and low metering coverage.
The commission said placing the company under interim management will allow regulators and the new board to address the financial and operational challenges and to pursue a process to secure a new core investor for the utility.
NERC added that the move comes amid wider sector challenges, noting its First Quarter 2026 report showed the 11 DisCos collected N597.56 billion, or 78.95 per cent of billed revenue, while Kaduna DisCo recorded the lowest collection efficiency at 45.81 per cent, underscoring the commercial difficulties the company faced before the intervention.
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Nse Anthony-Uko
Nse Anthony-Uko is a business and financial journalist with over two decades of experience covering Nigeria’s financial system, economy, energy sector, corporate landscape, and global economic developments. Her expertise blends frontline journalism with editorial leadership and a strong grasp of financial market dynamics. She has earned multiple professional recognitions and was selected for the International Visitors Leadership Programme (IVLP) in the United States.