The Nigerian Electricity Regulatory Commission (NERC) has officially dissolved the board of the Kaduna Electricity Distribution Company (KAEDC) and appointed its Managing Director and CEO, Dr. Abubakar Umar Hashidu, as administrator for an initial six-month period.....KINDLY READ THE FULL STORY HERE▶

Formalized under Order No. NERC/2026/086 and taking effect on August 10, 2026, the regulatory intervention follows comprehensive inquiries and consultations with key stakeholders, including the Bureau of Public Enterprises (BPE).

According to NERC, the drastic action was triggered by KAEDC’s critical financial and operational distress, characterized by prolonged market defaults, low capital investment, severe commercial weaknesses, and a massive deficit of assets against liabilities.

Key details surrounding the intervention include:

• Staggering Liabilities: KAEDC’s cumulative market debt since privatization reached approximately ₦456.5 billion by May 2026. This includes ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET), ₦41 billion owed to the Nigerian Independent System Operator (NISO), and an additional ₦14.26 billion in non-market statutory obligations.

• Accumulated Recent Debt: The company piled on another ₦118.6 billion in market debt between June 2024 and May 2026—the period following ASI Engineering Limited’s takeover of operations. NERC noted that ASI and KAEDC persistently failed to provide mandatory payment bank guarantees or viable repayment plans for these debts.

• Poor Remittance and High Losses: KAEDC only remitted 41.93 percent of its adjusted market invoices in 2025, creating a ₦46.71 billion shortfall. This was heavily driven by extreme Aggregate Technical, Commercial, and Collection (ATC&C) losses standing at 71.88 percent, meaning the company could only account for 28.2 percent of the energy delivered to customers.

• Failed Capital Commitments: The core investor fell severely short on its recapitalization targets, recording a capital expenditure (CAPEX) performance of just 10 percent in 2025 (spending roughly ₦2.48 billion against a minimum target of ₦24.51 billion).

• Stagnant Metering: Meter coverage for end-use customers remained dismally low, hovering between 33.26 percent and 35.54 percent under ASI’s control.

Due to these unfulfilled regulatory conditions and performance benchmarks tied to ASI’s 2024 acquisition of a 60 percent equity stake, NERC removed all board directors and stripped key management personnel of their Key Yardstick Licence approvals, requiring staff to undergo revalidation.

To steer the company through the transition, NERC appointed an interim board chaired by Dr. Abdullahi Garba, alongside special directors representing the BPE, including Engr. Francis U. Agoha, Mr. Aliyu E. Aliyu, Maj. Gen. Henry E. Ayamasaowei (rtd), Dr. Haliru Dikko, and Mr. Ayodeji A. Gbeleji. Dr. Hashidu will serve as a special director and administrator, managing daily operations, safeguarding company assets, and enforcing strict limitations on borrowing, asset sales, and major corporate decisions.

Finally, the administrator has been mandated to submit a comprehensive 12-month stabilization plan within 60 days. The intervention period will conclude either once a replacement core investor is successfully approved and transferred or through further regulatory directives from the Commission.