The Nigerian Electricity Regulatory Commission (NERC) has removed the board of Kaduna Electricity Distribution Company (KAEDC) over what it described as serious financial, operational and regulatory failures, and has appointed the company’s Managing Director and Chief Executive Officer, Dr Abubakar Umar Hashidu, as administrator for an initial period of six months.
The decision was contained in Order No. NERC/2026/086, which took effect on August 10, 2026, following an investigation and consultations with major stakeholders, including the Bureau of Public Enterprises (BPE).
According to NERC, KAEDC is facing a severe crisis characterised by prolonged market defaults, weak operational performance, inadequate investment and the absence of a credible recovery plan.
The commission disclosed that the company’s cumulative market obligations had reached N456.5 billion as of May 2026. This includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion owed to the Nigerian Independent System Operator (NISO). KAEDC is also said to owe N14.26 billion in statutory and third-party obligations.
NERC further stated that since ASI Engineering Limited took control of the utility in June 2024, the company had accumulated an additional N118.6 billion in market debt and had repeatedly failed to provide acceptable payment guarantees or a workable repayment plan.
The regulator also highlighted poor operational performance. It said KAEDC remitted only 41.93 per cent of its adjusted market invoices in 2025, resulting in a market shortfall of N46.71 billion.
In addition, the company recorded Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88 per cent.
NERC explained that the figure means KAEDC was able to account for only 28.2 per cent of the electricity it received and supplied to end-use customers during the 2025 review period.
The commission said the intervention is aimed at stabilising the utility and creating a pathway for sustainable recovery in the electricity distribution company.
