The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Board of Directors of Kaduna Electricity Distribution Company (Kaduna Electric) with immediate effect over severe financial insolvency amounting to N456.5 billion.
NERC announced the decision in a statement, citing the electricity distribution company’s poor financial and operational performance as reasons for the dissolution.
According to the regulator, Kaduna Electric remitted only 41.93 per cent of its adjusted market invoices in 2025 and recorded losses of 71.88 per cent during the period.
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NERC also disclosed that the company invested only N2.48 billion against a required capital expenditure of N24.51 billion, while customer metering coverage remained below 36 per cent.
The Commission said the financial challenges had reached a critical level, necessitating immediate intervention to protect electricity consumers and ensure the stability of the distribution company.
To maintain uninterrupted electricity distribution and operational stability across Kaduna Electric’s franchise area, NERC constituted an interim board of Special Directors.
Dr Abdullahi Garba has been appointed Chairman of the interim board, while Dr Abubakar Umar Hashidu was appointed Administrator for an initial six-month term.
The regulator also disclosed that Afreximbank would coordinate a transparent 12-month competitive process to secure a competent replacement core investor for Kaduna Electric.
NERC assured electricity consumers and other stakeholders that electricity distribution services across Kaduna Electric’s franchise area would remain safe and uninterrupted throughout the transition.