NERC dissolves Kaduna Electric board over poor performance

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of directors for the Kaduna Electric Company (KAEDCO). This comes after the utility was taken over by ASI Engineering Limited in June 2024, two years prior. NERC cited the inability of the new owners to meet remittance obligations and expand their network as reasons for the dissolution.

At May 2026, KAEDCO's cumulative market obligation since privatization stood at approximately ₦456.5bn, with ₦415.5bn owed to NBET and ₦41bn to the Nigerian Independent System Operator (NISO). The company also had ₦14.26bn in non-market obligations. KAEDCO only paid 41.93% of adjusted market invoices, resulting in a market shortfall of ₦46.71 billion during the review period ending December 2025.

The company's Aggregate Technical Commercial and Collection Losses (ATC&C) were 71.88%, meaning they only accounted for 28.2% of the energy they received and delivered to customers. Despite regulatory efforts and government interventions, KAEDCO's performance remains poor, posing risks to customers, creditors, and market stability.

The Commission announced an interim board to oversee operations for the next six months to maintain electricity service quality and protect customers.