NERC Dissolves Kaduna Disco Board Over N456bn Debt

The Nigerian Electricity Regulatory Commission (NERC) dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) due to the company's cumulative market obligations amounting to N456.5bn and ongoing financial and operational challenges. This decision was formalized in Order No.

NERC/2026/086, effective August 10, 2026. NERC's intervention followed consultations with key industry stakeholders, including the Bureau of Public Enterprises, and was prompted by KAEDC's prolonged regulatory and market defaults, inadequate investment, and poor operational performance.

As of May 2026, KAEDC owed N415.5bn to the Nigerian Bulk Electricity Trading Plc and N41bn to the Nigerian Independent System Operator, alongside other obligations totaling N14.26bn. Since ASI Engineering Limited took over operations in June 2024, KAEDC accrued an additional market debt of over N118.6bn.

The company only paid 41.93% of its adjusted market invoices in 2025, resulting in a market shortfall of approximately N46.71bn, attributed to high technical and commercial losses of 71.88%.