NERC Dissolves Kaduna DisCo Board Over N456.5 Billion Debt

The Nigerian Electricity Regulatory Commission has dissolved the board of directors of the Kaduna Electricity Distribution Company and assumed direct control of the utility, citing a severe debt crisis and operational failures. The intervention, announced in a regulatory order dated August 10, 2026, aims to stabilize the company and ensure the continuity of electricity distribution services across its network.

The regulator stated that the decision was taken to preserve the utility as a going concern. NERC said the company's cumulative market obligations reached approximately N456.5 billion as of May 31, 2026. This debt includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion owed to the Nigerian Independent System Operator, along with N14.26 billion in other statutory and third-party obligations.

The financial position deteriorated significantly after ASI Engineering Limited took over operations as the core investor in June 2024. According to the regulator, the company accumulated an additional N118.6 billion in market debt within two years. NERC also noted that the company and its core investor repeatedly failed to provide acceptable payment...