The Nigerian Electricity Regulatory Commission dissolved the board of Kaduna Electricity Distribution Plc on August 10, 2026, citing a cumulative market debt of N456.5 billion and operational shortfalls.
The board dissolution, announced under Order No. NERC/2026/086, marks a severe regulatory intervention in Nigeria’s privatized power sector. The order took effect on Monday, August 10, 2026, following formal inquiries and consultations with industry stakeholders, including the Bureau of Public Enterprises. Regulators stripped the core investor of management authority after concluding that the utility had fallen into a grave situation.
The distribution company serves a geographical franchise area. Yet that footprint has been plagued by deep commercial failures that have rippled upstream to power generators and gas suppliers, according to official regulatory data cited in regional coverage.
Mounting Market Debts and Broken Payment Guarantees
Kaduna Electricity Distribution Plc accumulated a cumulative market obligation of approximately N456.5 billion as of May 2026. The breakdown shows N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion due to the Nigerian Independent System Operator. Beyond those primary market liabilities, the utility built up another N14.26 billion in non-market statutory and third-party obligations.
The financial deterioration accelerated after ASI Engineering Limited assumed operational control in June 2024. The regulator reported that the company accrued more than N118.6 billion in additional market debt between June 2024 and May 2026. Regulators noted that the core investor repeatedly failed to furnish required payment bank guarantees and viable repayment plans under the market rules of the Nigerian Electricity Supply Industry.
“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.”
The Nigerian Electricity Regulatory Commission, Order No. NERC/2026/086
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Severe Collection Losses and Low Capital Expenditure
Underpinning the mounting debt were crippling collection losses. The utility paid only 41.93 per cent of its adjusted market invoices in 2025, generating a market shortfall of approximately N46.71 billion for the year. This underperformance tied directly to aggregate technical, commercial, and collection losses that stood at 71.88 per cent.
“This means that in the 2025 review period, KAEDC was only able to account for only 28.2 per cent of the energy received and delivered to end-use customers.”
The Nigerian Electricity Regulatory Commission, Regulatory Order
Capital investments also lagged far behind required minimum thresholds. Actual capital expenditure for 2025 came to roughly N2.48 billion against a mandated minimum provision of N24.51 billion, representing a performance rate of just 10 per cent. Regulator data showed that meter coverage remained stagnant between 33.26 per cent and 35.54 per cent throughout ASI’s tenure, despite sector-wide support programs.
Interim Management and Administrative Overhaul
To stabilize day-to-day functions, NERC named Dr Abubakar Umar Hashidu, the utility’s managing director and chief executive officer, as interim administrator for an initial six-month term. Hashidu will oversee daily operations, safeguard assets, and implement directives from the commission.
An interim board of special directors was installed alongside the administrator. Francis U. Agoha, Mr. Aliyu E.
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