 has dissolved the board of Kaduna Electricity Distribution Company (KAEDC).){kind=link}
NERC Dissolves Kaduna DisCo Board Over N456.5bn Debt
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company (KAEDC) and assumed control of the utility, citing a debt crisis of N456.5 billion.
The intervention was announced in a regulatory order issued on August 10, 2026.
“The Commission resolved to exercise its powers… to dissolve the board of directors of KAEDC by intervening to preserve the undertaking as a going concern,” NERC stated, adding that the move was necessary to ensure continuity of electricity distribution services.
The regulator said Kaduna DisCo had suffered worsening financial and operational challenges, including persistent defaults, weak collections, and high technical losses.
Since ASI Engineering Limited became the core investor in June 2024, the company accumulated an additional N118.6 billion in market debt.
NERC faulted the investor for failing to provide acceptable payment guarantees or a credible recovery plan.
“The company and its core investor repeatedly failed to provide acceptable payment guarantees required under electricity market rules,” the commission noted.
As part of the intervention, NERC dissolved the board, withdrew regulatory approvals for the management team, and appointed special directors as an interim board.
The current Managing Director will serve as Administrator for six months while a supervised process begins to secure a new investor within 12 months.
Kaduna DisCo’s debt includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET), N41 billion to the Nigerian Independent System Operator (NISO), and N14.26 billion in other obligations.
The company paid only 41.93% of its adjusted market invoices in 2025, leaving a N46.71 billion shortfall.
The utility’s weak remittance performance was linked to Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88%, meaning it accounted for just 28.2% of electricity delivered to customers.
NERC’s intervention marks one of the clearest cases of direct regulatory restructuring in Nigeria’s power sector, signaling a tougher stance on underperforming distribution companies.