NERC dissolves Kaduna Disco board over N456bn market debt

The Nigerian Electricity Regulatory Commission (NERC) has dismissed the board of Kaduna Electricity Distribution Plc (KAEDC) due to their N456.5bn in cumulative market obligations and ongoing financial and operational difficulties. The regulator also placed an interim board of special directors in charge and initiated a transparent process to select a new core investor for the electricity distribution company.

These decisions were outlined in Order No. NERC/2026/086, issued on Monday, August 10, 2026. This intervention followed an inquiry and discussions with key industry players, including the Bureau of Public Enterprises, as KAEDC's persistent regulatory and market defaults, insufficient investment, and subpar operational and commercial performance created a dire situation.

As of May 2026, KAEDC's total market obligation since privatization stood at approximately N456.5bn, including N415.5bn owed to Nigerian Bulk Electricity Trading Plc and N41bn owed to the Nigerian Independent System Operator. Additional market debt of over N118.6bn accumulated after ASI Engineering Limited took over operations in June 2024.

Despite regulatory exemptions worth N6.58bn between January 2024 and May 2026, and a total of N53.79bn in Federal Government assistance since July 2018, KAEDC's financial challenges persisted. The company paid only 41.93% of its adjusted market invoices in 2025, resulting in a market shortfall of around N46.71bn. KAEDC's meter coverage remained between 33.26% and 35.54% since ASI took over, despite efforts to improve meter deployment.