NERC has dissolved the Kaduna DisCo Board amid ₦456.5bn in market obligations, appointing an interim board and administrator to oversee the company.
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Board of Kaduna Electricity Distribution Plc (KAEDC), popularly known as Kaduna DisCo, over the company’s mounting financial obligations and poor operational performance. The regulatory intervention comes amid reported cumulative market obligations of about ₦456.5 billion, prompting the Commission to invoke its statutory powers to restructure the company and restore operational and financial discipline.
Under the intervention, NERC appointed an interim board of special directors to oversee the affairs of Kaduna DisCo, while the company’s Managing Director/Chief Executive Officer, Dr Abubakar Umar Hashidu, was appointed Administrator for an initial six-month period. The Commission also directed that steps be taken towards securing a replacement core investor for the distribution company as part of efforts to achieve a sustainable turnaround.
NERC attributed the intervention principally to Kaduna DisCo’s failure to meet its market obligations and key performance commitments. The Commission said the company’s accumulated obligations included substantial debts to the Nigerian Bulk Electricity Trading Plc (NBET) and the Nigerian Independent System Operator (NISO), while also pointing to weaknesses in revenue remittance, network efficiency and investment delivery.
According to the Commission, the company’s financial and operational position deteriorated despite previous regulatory interventions and opportunities provided for improvement. NERC said the situation had undermined the company’s ability to meet its obligations within the electricity market and necessitated stronger regulatory action under the Electricity Act 2023.
The latest intervention follows an earlier regulatory action against Kaduna DisCo. NERC’s 2024 Annual Report states that the Commission had intervened in the company in January 2024 over what it described as pervasive failure and non-performance, dissolving its board and appointing an administrator and special directors. The Commission said the earlier intervention was also intended to facilitate the eventual transfer of the undertaking to a new core investor.
NERC’s latest action therefore represents a renewed attempt to address the persistent financial and operational challenges confronting Kaduna DisCo, which serves customers across Kaduna, Kebbi, Sokoto and Zamfara states. The Commission’s intervention is expected to focus on improving financial discipline, strengthening operational performance and attracting the investment required to place the distribution company on a more sustainable footing.
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