NERC Dissolves Kaduna Electric Board Over ₦456.5bn Insolvency
NERC Dissolves Kaduna Electric Board Over ₦456.5bn Insolvency
NERC Dissolves Kaduna Electric Board Over ₦456.5bn Insolvency
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Board of Directors of Kaduna Electricity Distribution Company Plc (Kaduna Electric) with immediate effect, citing severe financial insolvency and concerns over the company’s operational sustainability.
According to NERC, the decision follows the accumulation of financial liabilities estimated at ₦456.5 billion, alongside significant weaknesses in the company’s financial and operational performance.
In a statement, the Commission disclosed that Kaduna Electric remitted only 41.93 per cent of its adjusted market invoices in 2025, while recording aggregate losses of 71.88 per cent.
The Commission further revealed that the DisCo invested just ₦2.48 billion during the period, against an approved capital investment requirement of ₦24.51 billion. Customer metering coverage also remained below 36 per cent, highlighting persistent challenges in service delivery and revenue collection.
NERC Appoints Interim Management
To ensure operational stability and uninterrupted electricity distribution across the company’s franchise area, NERC has constituted an Interim Board of Special Directors chaired by Dr Abdullahi Garba.
The Commission also appointed Dr Abubakar Umar Hashidu as Administrator for an initial six-month period.
NERC said the interim management arrangement is intended to stabilise the company, strengthen its operations and safeguard electricity supply to customers while longer-term measures are implemented.
As part of the restructuring process, Afreximbank (Afrexim) will coordinate a transparent 12-month competitive process aimed at securing a competent replacement core investor for Kaduna Electric.
The regulatory intervention is expected to provide a pathway towards restoring the financial health and operational efficiency of the distribution company.
NERC assured electricity consumers across Kaduna Electric’s franchise area that electricity distribution services will remain safe and uninterrupted throughout the transition.
The Commission said the measures are aimed at protecting consumers, restoring confidence in the electricity market and ensuring that distribution companies operate on a financially sustainable and service-oriented basis.
NERC Dissolves Kaduna Electric Board Over ₦456.5bn Insolvency
