…Appoints Interim Board of Special Directors, Gives Six months initial term
The Nigerian Electricity Regulatory Commission (NERC) has explained that its direct intervention in the Kaduna Electricity Distribution (KAEDC) management is to salvage it from its current “grave situation” which include among other things the cumulative indebtedness amounting to N589.36 Billion.
The breakdown of the KAEDC indebtedness as at May 2026 showed that the company owed ₦415.5 billion to NBET and ₦41 billion to NISO.
In addition, NERC cited that KAEDC has accrued other non-market statutory and third-party obligations totalling ₦14.26 billion and had since ASI Engineering Limited (ASI’s) takeover of operations of (KAEDC) in June 2024, it accrued additional market debt in excess of ₦118.6 billion as at May 2026.
NERC further listed other infractions including “prolonged regulatory and market default, inadequate investment, weak operational and commercial performance, insufficient assets relative to liabilities, and no credible recovery pathway.”
“ASI and KAEDC have persistently failed to furnish NBET and NISO with acceptable/credible payment bank guarantees per the Vesting Contract and NESI Market Rules, and have not presented a credible payment plan”, NERC noted in an “Order on Regulatory Intervention in Kaduna Electricity Distribution Plc” jointly signed by Dr. Musiliu O. Oseni, Chairman; and Dafe C. Akpeneye –
Commissioner, Legal, Licensing & Compliance; released Monday.
NERC observed that although KAEDC paid only 41.93% of adjusted market invoices, it left a market shortfall of approximately ₦46.71 billion in the period ending 31 December 2025.
It also cited that KAEDC’s Aggregate Technical, Commercial and Collection Losses (ATC&C) stood at 71.88%, meaning KAEDC accounted for only 28.2% of energy received and delivered to end-use customers in the 2025 review period.
According to NERC, the Core investor, “ASI failed to uphold capital-injection commitments: actual 2025 capital expenditure was approximately ₦2.48 billion against a minimum requirement of ₦24.51 billion, a 10% CAPEX performance rate (achieved only via Commission derogations/forbearances).
“KAEDC’s meter coverage of its end-use customer population remained low, ranging between 33.26% and 35.54% since ASI’s takeover.”
NERC argued that following its meeting on the 11 June 2026 with KAEDC and observation that KAEDC lacked plan of recovery and survival, the Commission resolved to exercise its powers under sections 75–79 of the EA to dissolve KAEDC’s board, intervening to preserve the undertaking as a going concern and achieve a transparent transition to a credible core investor within 12 months.
Consequently, it ordered an interim order for dissolution/removal of the board and appointment of administrators/special directors; order the licensee to take or refrain from specified action; or employ any other regulatory intervention tool deemed fit.
According to NERC, the objectives of the Order include: “Regulatorily intervene to halt KAEDC’s pervasive failure and non-performance, maintaining continuity and quality of electricity service and protecting end-use customers and market participants.
“Restore governance by: dissolving KAEDC’s board under section 75(2)(a); (ii) withdrawing KYL approvals issued to KAEDC’s management team; (iii) appointing an Administrator for an initial 6-month term and special directors to manage KAEDC’s affairs under section 75(2)(a).
“Preserve the undertaking as a going concern and achieve a transparent transition to a credible core investor within 12 months, via a sale process based on the highest and best price offered.
“Approve a special transition period commencing on the Order’s effective date and continuing until the earlier of: (i) completion of transfer to a replacement core investor approved by the Commission; or (ii) termination, extension or variation of the intervention by further Order.”
Meanwhile, NERC has dissolved KAEDC Board, Constituted Interim Board of Special Directors led by Dr. Abdullahi GARBA as Chairman; and Notified Corporate Affairs Commission.
The members of the Special Board of Directors include: Dr. Abdullahi GARBA-Chairman, Engr. Francis U. AGOHA -Special Director, Mr. Aliyu E. ALIYU -Special Director, Major General Henry E. AYAMASAOWEI (rtd)- Special Director, Dr. Haliru DIKKO- Special Director, Mr. Ayodeji A. GBELEYI- Special Director – BPE Representative; and Dr. Abubakar Umar HASHIDU- Special Director.
Their appointment is for an initial term of 6 months while the erstwhile Managing Director, Dr. Abubakar Umar Hashidu, was appointed Administrator for the same initial term of 6moths
The incumbent Managing Director/CEO, Dr. Abubakar Umar Hashidu, is appointed Administrator for an initial term of 6 months, subject to Commission review.
The Administrator serves 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
News3 days ago
News1 week ago
Business News4 days ago