Nigerian DisCo Faces Major Shake-Up as NERC Dissolves Board Over N456.5bn Debt Crisis
- NERC has dissolved the board of KAEDC and appointed its MD, Dr Abubakar Umar Hashidu, as administrator for six months
- The regulator said KAEDC had accumulated about N456.5 billion in market debt, alongside poor remittance performance and high electricity losses
- NERC has ordered the new administrator to submit a 12-month stabilisation plan within 60 days to address the DisCo’s financial and operational problems
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company (KAEDC) and appointed its Managing Director, Dr Abubakar Umar Hashidu, as administrator for six months.
The regulatory action, contained in Order No. NERC/2026/086, took effect on August 10, 2026, following an inquiry and consultations with stakeholders, including the Bureau of Public Enterprises (BPE).
Source: UGC
N456.5bn Market Debt
NERC said KAEDC was facing a severe financial and operational crisis, marked by persistent regulatory breaches, weak commercial performance, inadequate investment and liabilities that far exceed its available assets.
The Commission said the DisCo’s cumulative market obligations reached about N456.5 billion as of May 2026. The debt comprised N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion due to the Nigerian Independent System Operator (NISO).
KAEDC also had N14.26 billion in additional statutory and third-party obligations.
NERC said the situation worsened after ASI Engineering Limited assumed control of the company in June 2024, with the DisCo accumulating an additional N118.6 billion in market debt by May 2026.
According to the regulator, KAEDC and ASI repeatedly failed to provide acceptable payment guarantees required under the electricity market’s rules and did not submit a credible plan to clear the outstanding debts.
Poor Remittances, High Losses
NERC also blamed KAEDC’s weak financial position on poor market remittances and high electricity losses.
The DisCo paid only 41.93 per cent of its adjusted market invoices in 2025, resulting in a market shortfall of about N46.71 billion.
Its Aggregate Technical, Commercial and Collection (ATC&C) losses stood at 71.88 per cent during the 2025 review period, further worsening its financial position.
New Board Gets Stabilisation Mandate
NERC appointed an interim board chaired by Dr Abdullahi Garba, with representatives from the BPE and other industry professionals serving as special directors.
Hashidu was also appointed a special director and administrator for the initial six-month period.
Source: Getty Images
He will oversee daily operations, implement board and NERC directives, protect the company’s assets and records, and manage issues requiring regulatory or board approval.
NERC directed the administrator to submit a costed 12-month stabilisation plan within 60 days.
The plan must address cash flow, debt remittances, revenue collection, metering, energy accounting, loss reduction, service reliability, customer complaints, capital expenditure, procurement and staff obligations.
Source: Legit.ng
