By Ayodele Quadri, Lagos Times Correspondent
ABUJA, NIGERIA — The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of directors of Kaduna Electricity Distribution Plc (KAEDC) due to severe financial distress, prolonged regulatory defaults, and cumulative market debts totaling ₦456.5 billion.
The decision was formalized under regulatory order Order No. NERC/2026/086, taking effect on Monday, August 10, 2026. Following the dissolution, the power sector regulator appointed KAEDC’s Managing Director/CEO, Dr. Abubakar Umar Hashidu, as administrator to manage the utility alongside a team of non-executive special directors while a transparent sale process to acquire a new core investor commences.
Key Operational Highlights
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Debt Breakdown: According to NERC, KAEDC’s cumulative market obligations as of May 2026 stood at approximately ₦456.5 billion, comprising ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and ₦41 billion owed to the Nigerian Independent System Operator (NISO).
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Third-Party Liabilities: The distribution company also accrued an additional ₦14.26 billion in non-market statutory and third-party liabilities.
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Post-Takeover Escalation: NERC highlighted that since ASI Engineering Limited took over operational control of the utility in June 2024, KAEDC accumulated over ₦118.6 billion in new market debt through May 2026, failing to provide acceptable bank guarantees or a viable debt workout strategy.
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Low Remittance Performance: In 2025, KAEDC remitted only 41.93% of its adjusted market invoices, generating an annual market shortfall of approximately ₦46.71 billion.
┌────────────────────────────────────────────────────────────────────────┐
│ NERC KADUNA DISCO REGULATORY INTERVENTION MATRIX │
├────────────────────────────────────────────────────────────────────────┤
│ • Affected Entity : Kaduna Electricity Distribution Plc (KAEDC) │
│ • Regulatory Order : NERC/2026/086 (Effective August 10, 2026) │
│ │
│ • Cumulative Debt : ₦456.5 Billion Total Market Debt │
│ • ₦415.5bn Owed to NBET │
│ • ₦41.0bn Owed to NISO │
│ • ₦14.26bn Third-Party/Statutory Liabilities │
│ │
│ • Interim Leadership : Dr. Abubakar Umar Hashidu (Administrator) │
│ Supported by Board of Special Directors │
│ │
│ • Next Steps : Interim management pending sale to new │
│ core investor │
└────────────────────────────────────────────────────────────────────────┘“A Grave Situation Characterised by Prolonged Defaults”
“KAEDC was in a grave situation characterised by prolonged regulatory and market default, inadequate investment, weak operational and commercial performance, insufficient assets relative to its liabilities and an inability to present a credible pathway to sustainable recovery… The core investor persistently failed to furnish NBET and NISO with acceptable payment bank guarantees as required under the Market Rules.” — Nigerian Electricity Regulatory Commission (NERC)
