NERC Gives Kaduna DisCo 12 Months to Reset Operations

 

"The directive comes barely a week after the regulator dissolved the previous board of KAEDC over persistent financial and operational failures and commenced the process of finding a new core investor for the company." Oseni, Chairman NERC 

.... Says "the Commission expected the new leadership to begin delivering results immediately, particularly in tackling the DisCo’s high Aggregate Technical, Commercial and Collection (ATC&C) losses and significant metering deficit."

The Nigerian Electricity Regulatory Commission (NERC) has issued the newly constituted interim board of Kaduna Electricity Distribution Plc (KAEDC) a 12-month deadline to reset the company and restore it to a sustainable growth trajectory.

NERC Chairman, Dr. Musiliu Oseni, gave the charge on Monday, August 17, 2026, while addressing members of the interim board and the Administrator of the Kaduna electricity distribution company.

The directive comes barely a week after the regulator dissolved the previous board of KAEDC over persistent financial and operational failures and commenced the process of finding a new core investor for the company.

Oseni said the Commission expected the new leadership to begin delivering results immediately, particularly in tackling the DisCo’s high Aggregate Technical, Commercial and Collection (ATC&C) losses and significant metering deficit.

“We expect a lot from you, and the Administrator will bring you up to speed to ensure that you meet the target within one year. Most importantly, we want to begin to see progress immediately,” the NERC chairman said.

The regulator’s intervention followed a worsening financial position at KAEDC, with the company’s cumulative market obligations reaching about N456.5 billion as of May 2026.

The debt comprises about N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion owed to the Nigerian Independent System Operator (NISO). The company also has about N14.26 billion in other non-market statutory and third-party obligations.

NERC said KAEDC’s poor financial performance was largely linked to its extremely high ATC&C losses, which stood at 71.88 per cent in 2025. This meant the company was able to account for only 28.2 per cent of the electricity it received and delivered to customers during the review period.

The DisCo’s metering performance was also weak, with only 34.42 per cent of its customers metered at the end of 2025. Its billing efficiency stood at 61.56 per cent, while collection efficiency was 46.69 per cent.

Capital investment has also remained far below regulatory expectations. NERC said KAEDC invested about N2.48 billion in capital expenditure in 2025, against a minimum requirement of N24.51 billion, representing only about 10 per cent performance.

The regulator had earlier said KAEDC paid only 41.93 per cent of its adjusted market invoices in 2025, leaving a market shortfall of approximately N46.71 billion.

Against this backdrop, the Bureau of Public Enterprises (BPE) Director-General, Ayo Gbeleyi, urged the new KAEDC management to take advantage of available metering programmes to close the company’s wide metering gap.

The Chairman of the interim board, Dr. Abdullahi Garba, pledged that the board would work closely with NERC and BPE to resolve outstanding issues, strengthen the company’s operational and financial performance and ultimately make KAEDC viable and saleable.

He also expressed the board’s ambition to transform the company into a model of improved performance within the Nigerian Electricity Supply Industry.

NERC dissolved the previous KAEDC board through Order No. NERC/2026/086 after determining that the company had persistently failed to meet market obligations and other prescribed performance indices.

It subsequently constituted an interim board of special directors, chaired by Garba, while the incumbent Managing Director/Chief Executive Officer, Dr. Abubakar Umar Hashidu, was appointed Administrator for an initial six-month period.

The intervention also includes a supervised search for a new core investor. NERC has directed Afreximbank to lead an open and competitive process expected to produce a replacement investor within 12 months. Prospective investors are required to demonstrate adequate working capital, technical capacity to turn around a failing utility, credible financial backing and a viable five-year business plan.

The regulator said the broader objective was to halt KAEDC’s prolonged underperformance, protect electricity consumers, restore governance and ensure continuity and improved quality of electricity supply across its franchise area.

Suggested stronger headline options:

NERC Gives Kaduna DisCo 12 Months to Turn Around Operations

NERC to Kaduna DisCo: Reset Company, Deliver Results in 12 Months

N456.5bn Debt: NERC Gives Kaduna DisCo 12-Month Turnaround Deadline

71.88% Losses: NERC Orders Kaduna DisCo Reset in 12 Months

NERC Moves to Rescue Kaduna DisCo, Sets 12-Month Turnaround Target

The N456.5bn debt + 71.88% losses angle is, in my view, the strongest newspaper lead because it immediately establishes the scale of the crisis behind NERC's intervention. �

The Guardian Nigeria

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