Nigeria’s electricity regulator has dissolved the board of Kaduna Electricity Distribution Company for the second time in under three years, citing a debt burden that has more than quadrupled since its last intervention.
The Nigerian Electricity Regulatory Commission said KAEDC’s total market obligations now stand at approximately ₦456.5 billion — up sharply from the ₦110 billion that triggered a similar dissolution back in January 2024.
The debt breaks down into ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and ₦41 billion owed to the Nigerian Independent System Operator.
NERC said the company’s technical and commercial losses hit nearly 72 percent last year, meaning it could only account for just over a quarter of the electricity it received. ASI Engineering, which took over in June 2024, was found to have added over ₦118 billion in fresh debt without meeting its investment obligations. NERC rejected the firm’s request for a 24-month extension to turn things around.
The regulator has installed a seven-member interim board, chaired by Dr Abdullahi Garba, and appointed the company’s current CEO, Dr. Abubakar Umar Hashidu, as administrator for six months. Afrexim Bank has been directed to run a transparent process to find a new core investor within 12 months.
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