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Regulator names interim directors, appoints administrator as firm battles financial collapse
The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Board of Directors of Kaduna Electricity Distribution Company (Kaduna DisCo) with immediate effect, citing severe financial insolvency and mounting operational challenges.
The regulatory intervention comes as the electricity distribution company’s financial obligations reportedly soared to ₦456.5 billion, raising concerns over its ability to sustain efficient electricity supply and meet its obligations within the power sector.
NERC, in a statement, said the decision followed a review of the company’s financial and operational performance, which revealed significant weaknesses in revenue remittance, investment and customer metering.
According to the Commission, Kaduna DisCo remitted only 41.93 per cent of its adjusted market invoices in 2025, while its aggregate losses stood at a staggering 71.88 per cent.
The company’s investment performance also came under scrutiny, with only ₦2.48 billion invested against a capital requirement of ₦24.51 billion during the period under review.
NERC further disclosed that customer metering coverage remained below 36 per cent, a situation capable of worsening billing challenges and undermining efforts to improve accountability in electricity distribution.
Faced with the deteriorating situation, the regulator said it had moved to stabilise the company and protect electricity consumers across its franchise area.
As part of the intervention, NERC constituted an Interim Board of Special Directors, chaired by Dr. Abdullahi Garba, to oversee the affairs of the distribution company.
The Commission also appointed Dr. Abubakar Umar Hashidu as Administrator of Kaduna DisCo for an initial period of six months.
NERC said the intervention was designed to ensure operational stability and prevent disruption of electricity distribution services while a long-term solution to the company’s financial and ownership challenges is pursued.
As part of the restructuring process, Afreximbank will coordinate a transparent 12-month competitive process aimed at securing a competent replacement core investor for Kaduna DisCo.
The move is expected to pave the way for fresh investment, stronger management and improved operational efficiency in the company.
NERC assured electricity consumers within the Kaduna DisCo franchise area that the regulatory intervention would not affect the continuity of electricity distribution services.
The Commission stressed that electricity distribution operations would remain safe and uninterrupted throughout the transition.
The development represents one of the most significant regulatory interventions in Kaduna DisCo’s recent history, coming against the backdrop of persistent financial pressures confronting Nigeria’s electricity distribution sector.
With the interim management now in place, attention will turn to restoring the company’s financial health, improving metering coverage, reducing technical and commercial losses, and attracting a new investor capable of repositioning the utility for sustainable growth.
Source:@NTANewsNow
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