MON AUG 10 2026-theGBJournal| The Nigerian Electricity Regulatory Commission (NERC) said Monday it had issued an interim order dissolving the board of Kaduna Electric (KAEDC), effective immediately, citing severe financial insolvency and persistent operational failures.
It equally ordered a fresh search for a core investor, after the utility accumulated more than 118.6 billion naira ($87 million) in additional market debt.
NERC cited the company’s total market obligations, which had ballooned to about N456.5 billion by May 2026, comprising N415.5 billion due to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion due to the
Nigerian Independent System Operator (NISO).
KAEDC also accrued other non-market statutory and third-party obligations in the sum of N14.26billion.
Since the takeover of operations in KAEDC by ASI Engineering Limited (ASI) as Core Investor in June 2024, the Licensee accrued additional market debt in excess of N118.6billion as at May 2026.
NERC said the Core Investors and KEADC have persistently failed to furnish NBET and NISO with acceptable/credible payment bank guarantees in compliance with the term of their Vesting Contract and the provisions of the Market Rules of the Nigerian Electricity Supply Industry (NESI).
The Core Investor has also failed to present a credible payment plan for these liabilities.
”Kaduna Electric remitted just 41.93 percent of its adjusted market invoices in 2025, while aggregate technical, commercial and collection losses stood at 71.88 percent,” NERC said.
”This poor performance is directly linked to KAEDC’s high Aggregate Technical Commercial and Collection Losses (ATC&C) of 71.88%, which means that in 2025 review period, KAEDC was only able to account for only 28.2% of the energy received and delivered to end-use customers.
The utility company also invested only N2.48 billion against a required capital expenditure of N24.51 billion, while fewer than 36 percent of its customers were metered, NERC said.
NERC noted that it acted under sections 75 to 79 of Nigeria’s Electricity Act 2023, which provide for intervention in troubled electricity distribution companies while dissolving the board.
To prevent disruption to electricity supply, NERC appointed an interim board of special directors chaired by Dr Abdullahi Garba.
Dr Abubakar Umar Hashidu was named administrator for an initial six-month term.
NERC said the Administrator shall file for approval, within 60-days from the commencement of this Order, a costed 12-month stabilisation plan covering cash-flow controls, market remittance, collections, metering, energy accounting, loss reduction, service reliability, safety, customer complaint resolution, capital expenditure, procurement, staff obligations and legacy liabilities.
The plan shall identify monthly milestones, accountable officers, funding sources and measurable outcomes.
The regulator said Afrexim Bank would coordinate a transparent 12-month competitive process to identify and appoint a new, competent core investor for Kaduna Electric.
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