NERC sacks Kaduna DisCo board over N456bn debt crisis

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) over mounting debts and persistent operational inefficiencies.

The decision followed an order titled “Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023,” which came into effect on Monday, August 10, 2026.

As part of the action, the commission announced an interim regulatory intervention to stabilise the company.

“Pursuant to sections 75-79 of the Electricity Act 2023 [EA 2023) the board of directors of KAEDC is dissolved with immediate effect. The Corporate Affairs Commission (CAC) has been duly notified to restrict unauthorised changes to company records during this special transition period,” the order reads.

NERC said its action was based on a comprehensive review which revealed that the company’s core investor, ASI Engineering Limited, accumulated more than N118.6 billion in additional market debt as of May 2026, while failing to meet obligations such as providing the required bank guarantees.

The commission noted that KAEDC’s total market liabilities had risen to about N456.5 billion.

Further findings showed that the distribution company remitted only 41.93 percent of its adjusted market invoices in 2025 and recorded Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88 percent.

It also disclosed that the company invested just N2.48 billion in infrastructure, far below the required N24.51 billion, while customer metering coverage remained under 36 percent.

According to NERC, the combination of poor financial performance, operational lapses and the absence of a viable recovery plan necessitated immediate intervention.

The regulator said the move is aimed at protecting electricity consumers, ensuring continuity of service, and maintaining stability within the power sector.