NERC dissolves Kaduna Disco board over N456.5 billion debt and operational failures
The Nigerian Electricity Regulatory Commission NERC has dissolved the board of Kaduna Electricity Distribution Plc KAEDC due to its N456.5 billion cumulative market obligations and persistent financial and operational challenges. The decision, effective August 10, 2026, follows an inquiry and consultations with stakeholders, including the Bureau of Public Enterprises BPE. NERC cited KAEDC's prolonged regulatory and market defaults, inadequate investment, and weak performance since ASI Engineering Limited took over operations in June 2024. KAEDC's market obligations include N415.5 billion owed to Nigerian Bulk Electricity Trading Plc and N41 billion to the Nigerian Independent System Operator, with additional non-market obligations of N14.26 billion. The company paid only 41.93 percent of its adjusted market invoices in 2025, leading to a N46.71 billion market shortfall, attributed to high technical, commercial, and collection losses of 71.88 percent. ASI Engineering Limited also failed to meet capital injection commitments, with actual capital expenditure in 2025 at N2.48 billion against a required N24.51 billion. Meter coverage remained low, between 33.26 percent and 35.54 percent. NERC rejected ASI's request for a 24-month extension to stabilize KAEDC, noting the continued underperformance and systemic risk to the Nigerian Electricity Supply Industry. An interim board of special directors has been appointed, with Dr. Abdullahi Garba as chairman, and Dr. Abubakar Umar Hashid
