The Nigerian Electricity Regulatory Commission, NERC, has dissolved the board of directors of Kaduna Electricity Distribution Plc., KAEDC, over the company’s cumulative market obligations of N456.5 billion and what the regulator described as prolonged financial, operational and regulatory failures.
The commission also appointed an interim board of special directors and directed the commencement of a transparent process for the selection of a new core investor for the electricity distribution company.
The decisions are contained in Order No. NERC/2026/086, titled “Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023,” which took effect on Monday, August 10, 2026.
According to the order, the intervention followed an inquiry and consultations with key industry stakeholders, including the Bureau of Public Enterprises (BPE), over KAEDC’s prolonged regulatory and market defaults, inadequate investment and weak operational and commercial performance.
NERC said the company’s cumulative market obligation since its privatisation stood at approximately N456.5 billion as of May 2026.
The debt comprises about N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and another N41 billion due to the Nigerian Independent System Operator.
The regulator also identified other non-market statutory and third-party obligations amounting to N14.26 billion.
N118.6bn debt under new investor
NERC said the financial crisis worsened after ASI Engineering Limited took over the operations of KAEDC in June 2024.
According to the commission, the company accumulated additional market debt of more than N118.6 billion between the takeover and May 2026.
It said the development occurred despite regulatory and government interventions aimed at improving the company’s financial position and operational performance.
“The commission, following its inquiry and consultation undertaken with key industry stakeholders including the Bureau of Public Enterprises, finds that Kaduna Electricity Distribution Plc is in a grave situation characterised by prolonged regulatory and market default, inadequate investment, weak operational and commercial performance, insufficient assets relative to liabilities, and inability to present a credible pathway to sustainable recovery,” NERC said.
The commission said the company’s poor financial performance had also affected its ability to meet its obligations to the electricity market.
41.93% remittance performance
NERC said KAEDC paid only 41.93 per cent of its adjusted market invoices in 2025, resulting in a market shortfall of approximately N46.71 billion during the year.
The regulator attributed the poor remittance performance largely to the company’s high aggregate technical, commercial and collection losses.
According to NERC, the losses stood at 71.88 per cent in 2025, meaning that KAEDC could account for only about 28.2 per cent of the electricity it received and delivered to end-use customers during the period under review.
The commission said the performance was inconsistent with the financial and operational requirements expected of a distribution company participating in the Nigerian Electricity Supply Industry.
Capital expenditure falls short
The regulator also faulted KAEDC over its failure to meet capital investment commitments.
