The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company (KAEDC) over severe financial, operational and regulatory challenges.
The regulatory intervention, contained in Order No. NERC/2026/086, took effect on August 10, 2026, following an inquiry and consultations with key stakeholders, including the Bureau of Public Enterprises.
NERC said the Kaduna DisCo’s cumulative market obligations had reached approximately ₦456.5 billion as of May 2026. The debt comprises about ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and ₦41 billion owed to the Nigerian Independent System Operator (NISO).
The company also has an additional ₦14.26 billion in statutory and third-party obligations.
As part of the intervention, NERC appointed the company’s Managing Director/Chief Executive Officer, Dr. Abubakar Umar Hashidu, as administrator for an initial six-month period. The commission also constituted an interim board of special directors.
According to the regulator, the decision followed prolonged market defaults, weak operational and commercial performance, inadequate investment and the company’s inability to present a credible pathway toward sustainable recovery.
NERC said the intervention is aimed at protecting electricity consumers, creditors and the wider electricity market while creating a pathway for the company’s recovery.
The commission also directed the commencement of a transparent process for the selection of a new core investor for Kaduna DisCo.
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