JUST IN: NERC dissolves Kaduna Disco board over N456bn debt

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) due to the company’s N456.5 billion cumulative market obligations and ongoing financial and operational challenges. The regulator has appointed an interim board of special directors and initiated a process for selecting a new core investor for KAEDC.

This decision, outlined in Order No. NERC/2026/086, came into effect on Monday, August 10, 2026. NERC attributed the company's predicament to prolonged regulatory and market defaults, insufficient investment, weak operational and commercial performance, and an inability to present a credible recovery plan. Since ASI Engineering Limited took over operations in June 2024, KAEDC has accrued an additional N118.6 billion in market debt as of May 2026.

The regulator also noted that KAEDC paid only 41.93% of its adjusted market invoices in 2025, leading to a market shortfall of approximately N46.71 billion. ASI failed to meet its capital injection commitments, providing only 10% of the required minimum capital expenditure. Despite receiving regulatory derogations and federal interventions amounting to N53.79 billion since July 2018, KAEDC's financial difficulties persist, posing a systemic risk to electricity service continuity and market stability.