The Nigerian Electricity Regulatory Commission (NERC) has dissolved the Board of Directors of Kaduna Electricity Distribution Company (KAEDC) over its massive cumulative market debt of N456.5 billion and persistent operational, financial, and regulatory failures.
The commission announced the decision as part of efforts to restore efficiency, accountability, and stability in the electricity distribution company, which serves customers across Kaduna, Kebbi, Sokoto, and Zamfara states.
According to NERC, the company has consistently failed to meet its financial obligations within the Nigerian Electricity Supply Industry, while also recording poor operational performance and repeated breaches of regulatory requirements.
To prevent further deterioration of services, the regulator appointed an interim Board of Special Directors to oversee the affairs of KAEDC pending the emergence of a new management structure.
NERC also directed the immediate commencement of a transparent and competitive process to identify and appoint a new core investor capable of injecting fresh capital, improving governance, and repositioning the company for sustainable operations.
The commission explained that the intervention is aimed at protecting electricity consumers, ensuring uninterrupted service delivery, and safeguarding the stability of the nation’s power sector.
Industry stakeholders have described the move as one of the strongest regulatory actions taken in recent years, noting that it sends a clear message that electricity distribution companies must meet their financial and operational responsibilities.
Customers within the Kaduna Electricity franchise area are expected to continue receiving services during the transition, as the interim management has been tasked with maintaining normal operations while implementing reforms.
NERC reaffirmed its commitment to strengthening Nigeria’s electricity sector through strict regulatory oversight, improved corporate governance, and measures designed to enhance reliable power supply and attract credible investors into the industry.
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