NERC dissolves Kaduna DisCo board over N456bn debt

 The Nigerian Electricity Regulatory Commission (NERC) has
dissolved the board of Kaduna Electricity Distribution Plc over the company’s
N456.5 billion cumulative market obligations and prolonged financial and
operational challenges.

 

The regulator dissolved the board in an order on “Order on
the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to
the Electricity Act 2023”, which took effect on Monday, August 10, 2026.

NERC, therefore, formally issued an interim order for
regulatory intervention in the DisCo.

“Pursuant to sections 75-79 of the Electricity Act 2023 [EA
2023) the board of directors of KAEDC is dissolved with immediate effect. The
Corporate Affairs Commission (CAC) has been duly notified to restrict
unauthorised changes to company records during this special transition period,”
the order reads.

“The Commission’s decision was informed by a review which
found that ASI Engineering Limited, the core investor, accumulated over N118.6
billion in additional market debt by May 2026 while failing to provide the
required bank guarantees, contributing to total market obligations of
approximately 456.5 billion.

“The review also found that KAEDC remitted only 41.93% of
its adjusted market invoices in 2025, recorded Aggregate Technical, Commercial
and Collection (ATC&C) losses of 71.88%, invested only N2.48 billion
against a capital requirement of N24.51 billion and maintained customer
metering coverage of less than 36%.”

According to the commission, these conditions, coupled with
the absence of a credible recovery plan, informed its decision to intervene in
order to protect consumers, preserve service continuity, and safeguard the
stability of the electricity market.

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