The Nigerian Electricity Regulatory Commission, NERC, has assumed control of Kaduna Electricity Distribution Plc, KAEDC, following a severe deterioration in the company’s financial and operational position, with its market obligations estimated at N456.5 billion.
Under Interim Order No. NERC/2026/086, the Commission dissolved the KAEDC Board of Directors with effect from August 10, 2026, citing persistent financial and operational weaknesses that threaten the distributor’s ability to meet its obligations to the Nigerian Electricity Supply Industry, NESI, and sustain reliable service to customers.
NERC said the decision became necessary after KAEDC accumulated more than N118.6 billion in additional market debt under ASI Engineering Limited as of May 2026, pushing its total market obligations to approximately N456.5 billion.
The Commission also faulted the company’s weak market remittance performance, noting that it remitted only 41.93 per cent of its adjusted market invoices in 2025.
The distributor’s operational indicators were equally concerning.
Its Aggregate Technical, Commercial and Collection, ATC&C, losses stood at 71.88 per cent, meaning a substantial portion of electricity supplied through its network was lost through technical inefficiencies, commercial leakages or poor revenue collection.
NERC also disclosed that KAEDC invested only N2.48 billion in network infrastructure in 2025, against a regulatory capital expenditure requirement of N24.51 billion.
The significant investment shortfall has raised concerns about the company’s capacity to maintain and expand its network, improve reliability and reduce losses. Customer metering coverage also remained below 36 per cent.
To prevent disruption to electricity supply and ensure operational stability, NERC has constituted an interim board of Special Directors to oversee the company.
The board will be chaired by Dr. Abdullahi Garba, while Dr. Abubakar Umar Hashidu has been appointed Administrator for an initial six-month term.
The intervention is designed to stabilize KAEDC while providing a transition framework for addressing its financial and operational challenges.
Afrexim will coordinate a transparent 12-month process to secure a new core investor with the financial strength and technical capacity to inject fresh capital, improve governance, upgrade infrastructure, reduce losses and enhance electricity supply.
The development marks another major regulatory intervention in Nigeria’s electricity distribution sector, where several DisCos continue to grapple with liquidity constraints, high losses, weak collections, inadequate investment and mounting market debts.
For customers across Kaduna, Kebbi, Sokoto and Zamfara, the ultimate test of the intervention will be improved electricity supply, better customer service, expanded metering, stronger revenue collection and reduced reliance on estimated billing.
