By: Tijani Salako.
Recall that the Nigerian Electricity Regulatory Commission (NERC) had earlier dissolved the Kaduna Electricity Distribution Plc (KAEDC) board over approximately ₦456.5 billion in cumulative market obligations, following prolonged financial and operational difficulties.
The regulator said KAEDC had accumulated more than ₦118.6 billion in additional market debt under ASI Engineering Limited by May 2026, amid concerns over the DisCo’s financial and operational performance.
The NERC has now tasked the newly constituted Interim Board of Special Directors of Kaduna Electricity Distribution Plc (KAEDC) with implementing immediate interventions to reset the utility company and restore it to a sustainable growth trajectory within 12 months.
This was disclosed in a statement on NERC’s X handle, noting that the NERC Chairman, Dr. Musiliu Oseni, gave the charge on Monday, August 17, 2026, while addressing members of the Board and the Interim Administrator of KAEDC.
Oseni recalled that the Commission had undertaken a similar intervention in 2024, which resulted in significant improvement in the performance of the Distribution Company (DisCo) before the erstwhile investors resumed control.
“We expect a lot from you, and the Administrator will bring you up to speed to ensure that you meet the target within one year. Most importantly, we want to begin to see progress immediately,” Oseni said.
He identified KAEDC’s high Aggregate Technical, Commercial and Collection (ATC&C) losses and significant metering deficit as critical areas requiring urgent attention, stressing the need for the new board to deliver measurable improvements within the intervention period.
The latest intervention follows NERC’s assessment of the DisCo’s performance, which showed significant weaknesses in key operational and financial indicators. The Commission had earlier cited KAEDC’s low remittance of adjusted market invoices, high ATC&C losses, low customer metering coverage and inadequate investment as some of the challenges confronting the company.
Also speaking at the meeting, the Director-General of the Bureau of Public Enterprises (BPE), Ayo Gbeleyi, highlighted the various metering programmes available to KAEDC, urging the management to leverage the initiatives to close the metering gap across its franchise area.
Gbeleyi stressed the importance of improving metering coverage as part of efforts to strengthen revenue collection, reduce losses and improve the overall performance of the DisCo.
NERC Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, said the members of the Special Board were carefully selected based on their diverse professional expertise and relevant skills required to address the challenges confronting KAEDC.
In his remarks, the Chairman of the Board, Dr. Abdullahi Garba, pledged that the board would work closely with NERC and BPE to address outstanding issues, strengthen KAEDC’s operational and financial performance, and ultimately make the DisCo viable, saleable and a model for improved performance in the Nigerian Electricity Supply Industry.
The meeting also focused on the need for the board to deploy its expertise effectively, demonstrate measurable improvements in the company’s performance and ensure prudent and effective utilisation of funds to achieve the objectives of the intervention.
NERC had, through Order No. NERC/2026/086, dissolved the Board of Directors of KAEDC following repeated failures to meet market obligations and other prescribed performance indices.
The Commission subsequently constituted a five-member Interim Board of Special Directors, chaired by Garba, for an initial period of one year, alongside an Interim Administrator, Abubakar Umar Hashidu, appointed for an initial six-month period, to drive the reset of the DisCo.
The regulator also commenced steps towards securing a replacement core investor for KAEDC, with the intervention aimed at restoring the company’s financial sustainability, improving service delivery and positioning it for a viable investment future.
