The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company (Kaduna Electric) with immediate effect over a N456.5 billion financial insolvency, citing poor remittances, high losses, inadequate capital investment and low customer metering coverage.
The regulatory intervention is contained in Order No. NERC/2026/086, issued on Monday, August 10, 2026, following what the commission described as prolonged regulatory and market defaults, weak operational performance and inadequate investment by the electricity distribution company.
NERC said Kaduna Electric’s cumulative market obligations had risen to approximately N456.5 billion as of May 2026, comprising N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion due to the Nigerian Independent System Operator (NISO). The company also had N14.26 billion in other non-market statutory and third-party obligations.
According to the commission, Kaduna Electric remitted only 41.93 per cent of its adjusted market invoices in 2025 and recorded Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88 per cent.
The regulator further said the company invested only N2.48 billion against a required capital expenditure of N24.51 billion, while customer metering coverage remained below 36 per cent.
NERC said its decision followed an inquiry and consultations with key industry stakeholders, including the Bureau of Public Enterprises (BPE), which found the company to be in a grave financial and operational condition.
“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 commission stated.
To maintain operational stability and prevent disruption to electricity supply, NERC constituted an interim board of Special Directors chaired by Dr Abdullahi Garba.
It also appointed the company’s Managing Director/Chief Executive Officer, Dr Abubakar Umar Hashidu, as Administrator for an initial six-month term.
The commission directed the new administrator to oversee the day-to-day affairs of Kaduna Electric and work towards restoring operational and financial stability. Reports on the regulatory intervention also indicate that a 12-month stabilisation plan is expected as part of the turnaround process.
NERC also said Afreximbank would coordinate a transparent 12-month competitive process to identify and secure a competent replacement core investor for Kaduna Electric.
The move follows earlier regulatory concerns over Kaduna Electric’s persistent failure to meet its market obligations. NERC’s 2024 annual report had already identified the company as requiring regulatory intervention, including the dissolution of its board, appointment of an administrator and the eventual sale of the undertaking to a new core investor.
The latest intervention is being undertaken under the powers granted to NERC by Section 75 of the Electricity Act 2023, which provides the regulatory framework for intervention in a distribution company facing severe financial and operational difficulties.
NERC assured electricity consumers within Kaduna Electric’s franchise area that the regulatory action would not disrupt electricity distribution services.
The commission said the distribution network would continue to operate while the interim management structure and investor-replacement process are implemented.
