NERC DISSOLVES KADUNA DISCO BOARD OVER ₦456.5BN DEBT

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of directors of Kaduna Electricity Distribution Plc (KAEDC) over severe financial, operational, and regulatory challenges.

The regulatory intervention, which took effect on August 10, 2026, followed an inquiry into the company’s financial position and consultations with relevant stakeholders, including the Bureau of Public Enterprises.

NERC said KAEDC’s cumulative market obligations had risen to 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 ₦41 billion owed to the Nigerian Independent System Operator (NISO). The company also had an additional ₦14.26 billion in non-market statutory and third-party obligations.

The commission said the company had recorded prolonged defaults, weak operational and commercial performance, inadequate investment, and insufficient assets relative to its liabilities.

NERC has appointed KAEDC’s Managing Director and Chief Executive Officer, Dr Abubakar Umar Hashidu, as administrator for an initial six-month period.

The administrator is expected to oversee the company’s operations and implement measures aimed at stabilising the electricity distributor.

The development highlights the financial pressures facing Nigeria’s electricity distribution sector and the regulator’s increasing intervention to address persistent market obligations and operational weaknesses.