In response to Kaduna Electricity Distribution Plc’s (KAEDC) N456.5bn cumulative market liabilities and its ongoing financial and operational difficulties, the board of directors has been disbanded by the Nigerian Electricity Regulatory Commission (NERC).
The power distribution company’s new core investor will be chosen in an open and transparent procedure, and an interim board of special directors will be formed by the regulator.
“Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023” (NERC/2026/086) comprised the decisions and went into force on Monday, August 10, 2026.
Insufficient investment, poor operational and commercial performance, and KAEDC’s protracted regulatory and market failures prompted NERC to launch the investigation that led to the intervention, which was subsequently discussed with important industry players including the Bureau of Public Enterprises.
The commission stated that as of May 2026, KAEDC owed a total of around N456.5bn in market obligations since privatisation. Of this, N415.5bn was owed to the Nigerian Bulk Electricity Trading Plc and N41bn was payable to the Nigerian Independent System Operator.
The firm owed a total of N14.26bn to various third parties and non-market statutory requirements, as reported by the regulator.
NERC reported that as of May 2026, the company’s market debt had increased to approximately N118.6bn, following ASI Engineering Limited’s acquisition of KAEDC in June 2024.
According to the commission, Kaduna Electricity Distribution Plc is in a bad spot due to a lack of investment, poor operational and commercial performance, a large gap between assets and liabilities, and an unconvincing plan for long-term recovery. This conclusion was reached after the commission consulted with important industry groups, including the Bureau of Public Enterprises.
A market deficit of almost N46.71bn occurred in 2025, according to NERC, since KAEDC only paid 41.93% of its adjusted market invoices.
In 2025, the company’s high aggregate technical, commercial, and collection losses amounted to 71.88 percent, and this was connected to the bad remittance performance.
The authority stated that due to losses, KAEDC could only claim 28.2% of the power it received and sent to consumers throughout the evaluation period.
NERC further claimed that ASI had not recapitalised the utility as promised by injecting the necessary funds.
The commission said that in 2025, KAEDC spent about 2.48 billion Naira on capital expenditures, while having set a minimum budget of 24.51 billion Naira, which is just a 10% performance.
In addition, the regulator pointed out that, since ASI took over the company, KAEDC’s meter coverage has stayed between 33.26% and 35.54%, even tho there have been multiple interventions to encourage meter deployment by electrical distribution companies.
According to NERC, the company’s financial problems have continued even tho the federal government has given regulatory derogations totalling about N6.58 billion between 2024 and 2026 and has disbursed an aggregate of around N53.79 billion since July 2018.