The Nigerian Electricity Regulatory Commission (NERC) has officially dissolved the board of the Kaduna Electricity Distribution Plc (KAEDC), citing a massive N456.5 billion cumulative market obligation and persistent financial and operational underperformance.

The regulatory order, which took effect on Monday, August 10, 2026, marks a decisive intervention following prolonged defaults by the utility company.

According to the commission, the utility’s cumulative market debt as of May 2026 included N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion to the Nigerian Independent System Operator, alongside additional statutory obligations.

The regulator further highlighted that since ASI Engineering Limited assumed operations in June 2024, the company accrued over N118.6 billion in fresh market debt.

NERC noted that the company paid only 41.93 per cent of its adjusted market invoices in 2025, a situation exacerbated by a high aggregate technical, commercial, and collection loss rate of 71.88 per cent, meaning the firm could only account for 28.2 per cent of the electricity it received.

The intervention also addressed concerns over lack of investment.

NERC reported that the company’s actual capital expenditure in 2025 was just N2.48 billion—a mere 10 per cent of its mandated N24.51 billion target—and meter coverage remained stagnant despite numerous regulatory interventions and significant Federal Government financial support totaling over N53 billion since 2018.

In response to these systemic failures, NERC has appointed an interim board of seven special directors, chaired by Dr. Abdullahi Garba, to manage the company during a transition period.

Additionally, the incumbent Managing Director and Chief Executive Officer, Dr. Abubakar Umar Hashidu, has been appointed as the Administrator for an initial six-month term to oversee daily operations.

The commission has mandated Afrexim Bank to coordinate a competitive and transparent process to select a new core investor for the company within the next 12 months, aiming to safeguard electricity service continuity and restore the financial viability of the distribution network.