NERC removes Kaduna Disco board over massive debt and poor performance
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) due to severe financial and operational issues. The company reportedly owes a cumulative N456.5bn and has struggled with market defaults and inadequate investment. NERC has appointed an interim board and ordered a transparent process to find a new core investor. The regulator cited persistent underperformance and risks to customers and market stability as reasons for its intervention.
TLDR
- NERC dissolved KAEDC’s board, citing a cumulative market obligation of N456.5bn as of May 2026 and ongoing financial challenges.
- The regulator issued Order No. NERC/2026/086, effective from Monday, August 10, 2026, and appointed an interim board of special directors.
- Since ASI Engineering Limited took over in June 2024, KAEDC accrued an additional N118.6bn in market debt by May 2026.
- KAEDC paid only 41.93% of its adjusted market invoices in 2025, resulting in a market shortfall of about N46.71bn, and had high technical and commercial losses.
- NERC directed Afrexim Bank to coordinate a transparent process to select a new core investor within 12 months from the commencement of the order.
