NERC Dissolves Kaduna Electricity Board, Appoints New Administrator

NERC Dissolves Kaduna Electricity Board, Appoints Hashidu Administrator
Dr Abubakar Hashidu was appointed administrator for six months.
The regulator cited debts, losses, poor investment and weak performance.

The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Company and appointed its Managing Director and Chief Executive Officer, Dr Abubakar Umar Hashidu, as administrator for an initial six month period.

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EKO HOT BLOG reports that the regulatory intervention was contained in Order No. NERC/2026/086 issued on Monday and took effect on August 10, 2026.

NERC said the decision followed an inquiry and consultations with key industry stakeholders, including the Bureau of Public Enterprises.

The commission said the intervention was necessary because of what it described as KAEDC’s “grave situation”, citing prolonged regulatory and market defaults, inadequate investment, weak operational and commercial performance and insufficient assets relative to liabilities.

According to NERC, KAEDC’s cumulative market obligations since privatisation stood at approximately ₦456.5bn as of May 2026.

The debt comprised ₦415.5bn owed to the Nigerian Bulk Electricity Trading Plc and ₦41bn owed to the Nigerian Independent System Operator. The company also had ₦14.26bn in non market statutory and third party obligations.

NERC said KAEDC incurred an additional ₦118.6bn in market debt between June 2024 and May 2026, after ASI Engineering Limited took over its operations.

The commission said ASI and KAEDC had “persistently failed” to provide acceptable payment bank guarantees required under the Vesting Contract and Market Rules.

NERC also criticised the company’s remittance and investment performance. It said KAEDC paid only 41.93 per cent of its adjusted market invoices in 2025, resulting in a market shortfall of about ₦46.71bn.

The regulator said the company recorded Aggregate Technical, Commercial and Collection losses of 71.88 per cent during the 2025 review period.

It also said KAEDC recorded approximately ₦2.48bn in capital expenditure in 2025 against a minimum provision of ₦24.51bn.

NERC further described the company’s metering performance as “abysmally low”, noting that meter coverage remained between 33.26 per cent and 35.54 per cent.

Following the intervention, NERC dissolved the existing board and removed its directors.

It appointed an interim board chaired by Dr Abdullahi Garba, with other members including Engr Francis U. Agoha, Mr Aliyu E. Aliyu, Major General Henry E. Ayamasaowei (rtd), Dr Haliru Dikko and Mr Ayodeji A. Gbeleji.

Hashidu was appointed a special director and designated administrator of the company for six months.

He is expected to oversee daily operations, implement directives of the interim board and NERC, safeguard company assets and records and manage matters requiring regulatory approval.

NERC also imposed restrictions on major financial and corporate decisions, including borrowing, disposal of material assets, related party transactions, changes to senior management remuneration and alterations to the company’s capital structure.

The administrator was directed to submit a costed 12 month stabilisation plan within 60 days.

The plan will cover cash flow controls, market remittances, metering, energy accounting, loss reduction, service reliability, customer complaints, capital expenditure, procurement and legacy liabilities.

NERC Dissolves Kaduna Electricity Board, Appoints New Administrator

NERC said the transition period would end when KAEDC is transferred to a replacement core investor approved by the commission or when the intervention is terminated, extended or varied through another order.