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The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc over severe financial challenges and rising market debt.
In a statement on Monday, NERC said it issued an interim order, effective August 10, 2026, to dissolve the board of KAEDC under Sections 75 to 79 of the Electricity Act 2023.
NERC has issued an Interim Order (Order No: NERC/2026/086) dissolving the board of Kaduna Electricity Distribution Plc (KAEDC) effective August 10, 2026, pursuant to sections 75–79 of the Electricity Act 2023.
This decisive action follows severe financial insolvency, with… pic.twitter.com/OQ6fnvdUNH
— NERC Nigeria (@NERCNG) August 10, 2026
The commission said the electricity distributor had accumulated more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026, pushing its total market obligations to about ₦456.5 billion.
NERC also said KAEDC remitted only 41.93 per cent of its adjusted market invoices in 2025, recorded Aggregate Technical, Commercial and Collection losses of 71.88 per cent, and invested ₦2.48 billion against a required capital expenditure of ₦24.51 billion.
The commission added that customer metering coverage remained below 36 per cent.
To maintain stable operations, NERC said it had appointed an interim board of special directors, chaired by Dr Abdullahi Garba, while Dr Abubakar Umar Hashidu was appointed administrator for an initial six-month term.
The commission said Afrexim would coordinate a 12-month competitive process to select a replacement core investor for the distribution company.
“To ensure uninterrupted service delivery and operational stability, an interim board of Special Directors has been constituted, chaired by Dr Abdullahi Garba, while Dr. Abubakar Umar Hashidu has been appointed as Administrator for an initial 6-month term,” it said.
“Furthermore, Afrexim will coordinate a transparent 12-month competitive process to secure a competent replacement core investor.”
The interim board will exercise governance and oversight responsibilities in line with NERC’s order, the Electricity Act and KAEDC’s licence obligations, while any vacancy or replacement of its members will be determined solely by the commission.
The special directors appointed to the interim board are Francis Agoha, Aliyu Aliyu, Henry Ayamasaowei and Haliru Dikko, while Ayodeji A. Gbeleyi will represent the Bureau of Public Enterprises.
NERC assured electricity consumers within KAEDC’s franchise area that distribution services would remain safe and uninterrupted throughout the transition.
