The Nigerian Electricity Regulatory Commission has dismantled the board of the Kaduna Electricity Distribution Company, citing severe operational and financial instability. To stabilize the utility, the commission named Dr. Abubakar Umar Hashidu as the administrator for a six-month tenure.
This decision, detailed in Order No. NERC/2026/086, became effective on August 10, 2026, following extensive consultations with entities like the Bureau of Public Enterprises. NERC described the utility’s state as critical, noting a total market debt of approximately N456.5 billion as of May 2026, which includes significant arrears owed to the Nigerian Bulk Electricity Trading Plc and the Nigerian Independent System Operator.
Since ASI Engineering Limited assumed control in 2024, the company’s financial health has deteriorated further, accumulating an additional N118.6 billion in market liabilities. The commission highlighted the firm’s failure to provide necessary bank guarantees, poor remittance rates, and exceptionally high commercial losses, which reached 71.88 per cent in 2025. Furthermore, capital expenditure remained minimal, with the company investing only 10 per cent of its required targets.
An interim board, led by Dr. Abdullahi Garba, will now oversee the company alongside the new administrator. During this transition, the firm faces strict limitations on borrowing, asset disposal, and management changes. The administrator must deliver a comprehensive 12-month stabilization strategy within two months to address service reliability, debt, and operational inefficiencies.
