NERC Dissolves Kaduna Electricity Board Over₦456.5 Billion Debt

On August 10, 2026, the Nigerian Electricity Regulatory Commission (NERC) dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) due to a cumulative market debt of₦456.5 billion. This action was taken under Sections 75 to 79 of the Electricity Act 2023, citing prolonged financial, operational, and regulatory failures.

Details of the Intervention

KAEDC's debt includes₦415.5 billion owed to Nigerian Bulk Electricity Trading Plc (NBET) and₦41 billion to the Nigerian Independent System Operator (NISO). Additionally, the company has₦14.26 billion in other non-market obligations. NERC's Order No. NERC/2026/086, titled "Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023," took effect immediately.

Reasons for the Dissolution

Since ASI Engineering Limited took over KAEDC's operations in June 2024, the company's financial position has deteriorated, accumulating over₦118.6 billion in additional market debt by May 2026. Despite government and regulatory interventions, KAEDC faced prolonged defaults, inadequate investment, and weak operational performance, leading to this decisive regulatory action.

Implications and Next Steps

NERC's intervention aims to stabilize KAEDC's operations and financial health. The dissolution of the board and appointment of interim directors signal a commitment to enforcing regulatory standards and ensuring the reliability of electricity distribution. Stakeholders, including consumers and investors, will be closely monitoring the restructuring process and its impact on service delivery.

For more information, refer to the original article on Energy News Africa: NERC Dissolves Kaduna Power Distributor's Board Over₦456.5 Billion Naira Debt