…Appoints Interim Board, Administrator to manage Kaduna
From: David Onuoja, Abuja
The Nigerian Electricity Regulatory Commission (NERC), on Monday, revoked the operating licence of Kaduna Electricity Distribution Company (KAEDCO), and dissolved its Board of Directors over prolonged default, poor service delivery and unsustainable debt.
In Order No. NERC/2026/086 signed on Sunday, August 10, 2026, the Commission invoked Sections 75–79 of the Electricity Act 2023 to remove all directors of KAEDC with immediate effect and constituted an interim board for an initial six-month term.
Dr. Abdullahi Garba, was appointed Chairman of the interim board. Other members include Engr. Francis Agoha, Mr. Aliyu Aliyu, Major General Henry Ayamasaowei (rtd), Dr. Haliru Dikko, and Mr. Ayodeji Gbeleyi, representing the Bureau of Public Enterprises, BPE.
The incumbent Managing Director, Dr. Abubakar Umar Hashidu, will serve as Administrator and oversee day-to-day operations during the transition.
NERC cited a “grave situation” of collapsing performance and mounting obligations threatening electricity supply in Kaduna and parts of four other states under the KAEDCO franchise.
According to the Commission, as at May 2026, KAEDC’s cumulative market obligation since privatisation stood at approximately ₦456.5 billion.
The breakdown includes: ₦415.5 billion, owed to Nigerian Bulk Electricity Trading Plc, ₦41 billion, to the Nigerian Independent System Operator, and ₦14.26 billion, in other statutory obligations.
The situation worsened under core investor ASI Engineering Limited, which took over in June 2024. NERC said KAEDC accrued an additional ₦118.6 billion, in market debt between June 2024 and May 2026.
For 2025, the DisCo remitted only ₦33.73 billion, out of an adjusted invoice of ₦80.44 billion, representing a remittance rate of 41.93% and a shortfall of ₦46.71 billion.
The company also consistently failed to provide bank guarantees required under the Vesting Contract and NESI Market Rules.
NERC said KAEDC’s Aggregate Technical, Commercial and Collection Losses stood at 71.88%, in 2025, meaning only 28.2% of energy received was accounted for.
Metering coverage remained stagnant between 33.26% and 35.54%, since the takeover. Capital expenditure also fell short, with actual 2025 CAPEX at ₦2.48 billion, against a required minimum of ₦24.51 billion — a 10% delivery rate.
NERC recalled granting conditional approval to ASI on January 18, 2024, subject to 10 conditions including technical capacity, loss reduction targets and market guarantees.
A claim of compliance by ASI in August 2025 was rejected by the Commission, while BPE also said proof of financial and technical capacity was never fully provided.
A final attempt to avert intervention failed on June 11, 2026, when ASI requested a 24-month extension at a meeting convened by Afreximbank. Regulators rejected the request, saying further delay posed unacceptable risk to customers.
Under the new order, Afreximbank will lead an open and competitive sale process for a new core investor within 12 months. Key milestones include a transaction structure in 60 days, bid documents in 180 days, and appointment of a preferred bidder within one year.
Prospective investors must demonstrate adequate working capital, transparent ownership, technical capacity, and Tier-1 bank guarantees covering at least three months of market invoices.
The Administrator has been directed to submit a costed 12-month plan within 60 days covering cash-flow controls, metering, loss reduction and customer service. All revenues will be managed under NERC’s cash-waterfall arrangement.
NERC Chairman, Musiliu O. Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe C. Akpeneye, signed the order.
The Commission also directed the Corporate Affairs Commission not to register any change in KAEDC’s shareholding or directors during the transition without NERC’s written approval.
