Experts: NERC’s Sack of Kaduna Disco Signals Deeper Rot in Power Privatisation
Peter Uzoho The decision by the Nigerian Electricity Regulatory Commission’s (NERC) to sack the board and core investor of Kaduna Electricity Distribution Company (KAEDCO) over a N456.5 billion debt has
The Nigerian Electricity Regulatory Commission (NERC) has dismissed the board and core investor of Kaduna Electricity Distribution Company (KAEDCO) due to a debt of N456.5 billion and high ATC&C losses. Industry experts argue that the sack of the board is merely addressing the symptom, not the underlying issues. They stress the need to resolve governance gaps, clarify the role of lenders, inject long-term capital, and realign tariffs with costs to prevent the crisis from recurring in other Discos.
Energy expert Odion Omonfoman questions the regulatory oversight, the accumulation of debts, the role of the Bureau of Public Enterprises (BPE), and the reliance on banks to manage power companies. Economics professor Adeola Adenikinju supports NERC's action but emphasizes the need for capital injection rather than just sanctions.
Both agree that the privatization structure requires significant capital to improve infrastructure and reduce losses.
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