NERC sacks Kaduna DisCo board over N456bn debt, appoints administrator

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By Obas Esiedesa

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The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company (KAEDC) over what it described as grave financial, operational and regulatory failures, appointing the utility’s Managing Director/Chief Executive Officer, Dr. Abubakar Umar Hashidu, as administrator for an initial six-month period.

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The intervention, contained in Order No. NERC/2026/086, took effect from August 10, 2026, following an inquiry and consultations with key stakeholders, including the Bureau of Public Enterprises (BPE).

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NERC said KAEDC was in a “grave situation” marked by prolonged market defaults, weak operational performance, inadequate investment and an inability to present “a credible pathway to sustainable recovery.”

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According to the Commission, the DisCo’s cumulative market obligations had risen to N456.5 billion as of May 2026, comprising N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion to the Nigerian Independent System Operator (NISO). It also owed N14.26 billion in statutory and third-party obligations.

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The regulator disclosed that since ASI Engineering Limited assumed control in June 2024, KAEDC had accumulated an additional N118.6 billion in market debt and “persistently failed” to provide acceptable payment bank guarantees or a credible repayment plan.

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NERC also cited poor operational performance, noting that KAEDC remitted only 41.93 per cent of its adjusted market invoices in 2025, creating a market shortfall of N46.71 billion. Aggregate Technical, Commercial and Collection (ATC&C) losses stood at 71.88 per cent.

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“This means that in the 2025 review period, KAEDC was only able to account for 28.2 per cent of the energy received and delivered to end-use customers,” the Commission said.

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