The Nigerian Electricity Regulatory Commission (NERC) has officially removed the board of the Kaduna Electricity Distribution Company (KAEDC). This decision follows identified severe financial and operational issues. Consequently, Dr. Abubakar Umar Hashidu, the firm’s Managing Director and CEO, has been installed as the administrator for a six-month duration.
Formalized in Order No. NERC/2026/086, the action became effective on August 10, 2026. This move was preceded by detailed investigations and discussions with major partners, such as the Bureau of Public Enterprises. The regulator justified the takeover by citing persistent market defaults and a lack of viable strategies for long-term recovery.
By May 2026, the utility had reached a staggering debt of N456.5 billion. This total includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and N41 billion to the Nigerian Independent System Operator, alongside additional outstanding debts of N14.26 billion. Since ASI Engineering Limited took management in June 2024, the company incurred an extra N118.6 billion in debt while failing to provide necessary payment guarantees.
Operational data shows that the company struggled throughout 2025, remitting less than 42 percent of its required invoices. With technical and commercial losses reaching nearly 72 percent, the regulator noted that the distributor accounted for only about 28 percent of the electricity it received for customer distribution.
