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

The decision, contained in Order No. NERC/2026/086 and effective from today, followed an inquiry by NERC and consultations with key industry stakeholders, including the Bureau of Public Enterprises.

NERC said the DisCo was facing serious financial, operational and regulatory challenges, including prolonged market defaults, inadequate investment, high technical and commercial losses, insufficient assets and the absence of a credible recovery plan.

The regulator said KAEDC's cumulative market obligations since privatisation stood at about N456.5 billion as of May 2026. The figure comprises N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion owed to the Nigerian Independent System Operator. The company also has about N14.26 billion in other statutory and third-party obligations.

NERC said KAEDC incurred an additional N118.6 billion in market debt between June 2024, when ASI Engineering Limited assumed operational control, and May 2026. NERC warned that failure to achieve measurable progress could lead to the transfer of KAEDC to an alternative core investor.

— TVC