By Abubakar Yunus
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc over the company’s N456.5 billion cumulative market obligations and prolonged financial and operational challenges.
The regulator dissolved the board in an order on “Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023”, which took effect on Monday, August 10, 2026.
NERC, therefore, formally issued an interim order for regulatory intervention in the DisCo.
“Pursuant to sections 75-79 of the Electricity Act 2023 [EA 2023) the board of directors of KAEDC is dissolved with immediate effect. The Corporate Affairs Commission (CAC) has been duly notified to restrict unauthorised changes to company records during this special transition period,” the order reads.
“The Commission’s decision was informed by a review which found that ASI Engineering Limited, the core investor, accumulated over N118.6 billion in additional market debt by May 2026 while failing to provide the required bank guarantees, contributing to total market obligations of approximately 456.5 billion.
“The review also found that KAEDC remitted only 41.93% of its adjusted market invoices in 2025, recorded Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88%, invested only N2.48 billion against a capital requirement of N24.51 billion and maintained customer metering coverage of less than 36%.”
According to the commission, these conditions, coupled with the absence of a credible recovery plan, informed its decision to intervene in order to protect consumers, preserve service continuity, and safeguard the stability of the electricity market.
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