Nigerian Electricity Regulatory Commission (NERC) has issued an Interim Order (Order No: NERC/2026/086) dissolving the board of Kaduna Electricity Distribution Plc (KAEDC) effective August 10, 2026, pursuant to sections 75–79 of the Electricity Act 2023.
This decision, according to the Commission, followed severe financial insolvency, with KAEDC accumulating over ₦118.6 billion in additional market debt under ASI Engineering Limited by May 2026, bringing total market obligations to approximately ₦456.5 billion.
A statement on the commission’s X handle read, “The Commission’s decision was informed by a review which found that ASI Engineering Limited, the core investor, accumulated over N118.6 billion in additional market debt by May 2026 while failing to provide the required bank guarantees, contributing to total market obligations of approximately 456.5 billion.
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“Additionally, the utility remitted only 41.93% of its adjusted market invoices in 2025, recorded ATC&C losses of 71.88%, invested only ₦2.48 billion against a capital requirement of ₦24.51 billion, and maintained customer metering coverage of less than 36%.
“KAEDC’s board of directors is dissolved. All directors are removed from office. The Commission has notified the Corporate Affairs Commission (CAC) and other stakeholders. CAC shall not register or give effect to any change in shareholding, directorship or constitutional records during the special transition period without the Commission’s prior written approval.”
The statement added that to ensure uninterrupted service delivery and operational stability, an interim seven- man board of Special Directors has been constituted to be chaired by Dr Abdullahi Garba, for an initial term of 6 months, subject to Commission review and will serve as CEO of the undertaking, manages day-to-day operations, implements interim-board resolutions and Commission directives, safeguards assets and records, and files matters reserved for approval, while Dr Abubakar Umar Hashidu has been appointed as Administrator for an initial 6-month term. Others are Engineer Francis Agoha, Mr. Aliyu E. Aliyu, Major General Henry Ayamasaowei, Dr Haliru Dikko and Mr Ayodeji Gbeleyi, a BPE Representative.
According to NERC, while Afrexim will coordinate a transparent 12-month competitive process to secure a competent replacement core investor, it assured that electricity distribution services across the KAEDC franchise area remain safe and uninterrupted.
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