Oluwafunbi Bello 
KADUNA, Nigeria – The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) and appointed an interim management structure after mounting debts, poor investment and high electricity losses pushed the company into what the regulator described as a severe financial crisis.
The intervention, which took effect on Monday, is aimed at protecting electricity consumers, creditors and the wider Nigerian Electricity Supply Industry (NESI) while a new core investor is sought for the troubled distribution company.
NERC said KAEDC’s outstanding market obligations had risen to about ₦456.5 billion as of May 2026, comprising approximately ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and ₦41 billion payable to the Nigerian Independent System Operator.
The company also had about ₦14.26 billion in other statutory and third-party obligations, further worsening its financial position.
According to the regulator, KAEDC’s financial difficulties persisted despite about ₦53.79 billion in Federal Government interventions since 2018 and approximately ₦6.58 billion in regulatory reliefs between January 2024 and May 2026.
NERC said the company accumulated more than ₦118.6 billion in additional market debt after ASI Engineering Limited assumed control in June 2024.
The regulator said KAEDC’s operational performance had also deteriorated, with the company paying only 41.93 per cent of its adjusted market invoices in 2025, resulting in a shortfall of about ₦46.71 billion.
Its aggregate technical, commercial and collection losses stood at 71.88 per cent, while capital investment remained significantly below the level required to improve its network.
NERC said KAEDC spent only ₦2.48 billion on capital expenditure in 2025, compared with a minimum requirement of about ₦24.51 billion.
Meter coverage also remained below 36 per cent, according to the regulator.
“The continued underperformance therefore poses material risk to end-use customers, creditors, market stability and continuity of electricity service,” NERC said.
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Hope Ajayi 
Oluwatobi Adu 
