The Nigerian Electricity Regulatory Commission has taken over Kaduna Electricity Distribution Company and dissolved its board of directors over a mounting debt crisis that has pushed the company’s cumulative market obligations to about N456.5 billion.
In a regulatory order issued on August 10, 2026, the commission said the intervention was aimed at preserving KAEDC as a going concern and ensuring uninterrupted electricity distribution services across its network.
The intervention followed months of worsening financial and operational challenges at the utility. NERC cited persistent market payment defaults, weak revenue collection, high technical and commercial losses, and the failure of the company’s core investor to present a credible recovery plan.
According to the regulator, Kaduna DisCo accumulated an additional N118.6 billion in market debt between the takeover by ASI Engineering Limited as core investor in June 2024 and May 2026.
NERC also said the company and its core investor repeatedly failed to provide acceptable payment guarantees required under electricity market rules and did not submit a credible plan for settling the outstanding liabilities.
NERC said it would dissolve Kaduna DisCo’s board and intervene in the company to stabilise its operations, while facilitating a transparent process for the appointment of a new core investor within 12 months.
“Further to the meeting of 11 June 2026, the Commission resolved to exercise its powers conferred under sections 75 – 79 of the EA to dissolve the board of directors of KAEDC by intervening to preserve the undertaking as a going concern and achieve a transparent transition to a credible core investor within 12 months,” NERC stated.
As part of the intervention, NERC said it was acting in the public interest to protect electricity distribution services by dissolving the existing board and appointing special directors as an interim board.
The commission also withdrew previously granted regulatory approvals for the management team, retained the current Managing Director as Administrator for an initial six-month period, and began a supervised process to secure a technically competent and financially capable new core investor.
The regulatory order provides for the dissolution of Kaduna DisCo’s board, the withdrawal of key management approvals, and the appointment of an administrator and special directors to oversee the company during the intervention period.
NERC said Kaduna DisCo’s financial position had deteriorated significantly, with its cumulative market obligations rising to N456.5 billion as of May 31, 2026.
The liabilities include N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion owed to the Nigerian Independent System Operator, alongside N14.26 billion in other statutory and third-party obligations.
