The Nigerian Electricity Regulatory Commission has dissolved the board of Kaduna Electricity Distribution Company, KAEDC, and appointed an interim seven-member board to oversee the company’s affairs.
The regulatory action followed what NERC described as serious and prolonged financial, regulatory and operational problems at the electricity distribution company.
NERC announced the decision in a regulatory order dated August 10, 2026, signed by its Chairman, Musliu Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.
Under the order, the commission appointed an interim special seven-member board made up of Dr Abdullahi Garba, Engineer Francis U. Agoha, Aliyu E. Aliyu, retired Major General Henry E. Ayamasaowei, Dr Haliru Dikko, Dr Abubakar Umar Hashidu and Mr Ayodeji A. Gbeleyi, who represents the Bureau of Public Enterprises.
NERC also appointed the incumbent Managing Director and Chief Executive Officer of Kaduna DisCo, Dr Abubakar Umar Hashidu, as Administrator for an initial period of six months.
The commission said the appointment could be reviewed depending on the company’s performance and the progress made during the transition period.
According to NERC, the decision to dissolve the board was necessary because of what it described as a “grave situation” involving prolonged regulatory and market defaults.
The regulator also cited inadequate investment, weak operational and commercial performance, insufficient assets compared with liabilities and the inability of the company to provide a credible plan for achieving sustainable recovery.
NERC said the board had therefore failed to provide the level of leadership required to address the challenges confronting the company.
“KAEDC’s board of directors is HEREBY DISSOLVED. All directors of KAEDC are removed from office, and the existing board stands dissolved pursuant to Section 75 of the EA,” the commission stated.
The regulator said it had notified the Corporate Affairs Commission and other relevant stakeholders about the dissolution.
It also directed that the CAC should not register or recognise any changes involving the company’s shareholding, directorship or constitutional records during the special transition period without the commission’s prior written approval.
The decision is part of NERC’s regulatory powers under the Electricity Act and comes against the background of continuing financial and operational difficulties in Nigeria’s electricity distribution sector.
Electricity distribution companies, commonly known as DisCos, are responsible for taking electricity supplied through the national grid and distributing it to homes, businesses and other customers within their areas of operation.
Their performance has a direct effect on electricity supply because problems involving investment, infrastructure, billing, revenue collection and payment obligations can affect the wider electricity market.
Kaduna DisCo is responsible for electricity distribution in Kaduna, Kebbi, Sokoto and parts of Zamfara states.
The company serves a large number of residential, commercial and industrial customers across the North-West and has faced the same challenges that have affected several electricity distribution companies in the country.
Among the major problems confronting Nigeria’s power sector are inadequate infrastructure, ageing distribution equipment, electricity theft, poor revenue collection, unpaid bills and insufficient investment.
DisCos have also complained over their inability to recover the full cost of electricity supplied to customers, while regulators have continued to push the companies to improve service delivery and strengthen their financial position.
NERC’s latest action indicates that the commission is taking a more direct approach towards DisCos that fail to meet regulatory and financial obligations.
The regulator has over the years introduced measures aimed at improving the performance of the electricity market, including setting service standards and monitoring the financial and operational performance of power companies.
The dissolution of the Kaduna DisCo board is therefore expected to place greater responsibility on the interim management to stabilise the company and develop a workable recovery plan.
The appointment of Hashidu as Administrator is also significant because he is already serving as the company’s Managing Director and Chief Executive Officer.
His continued role could provide some level of continuity while the interim board begins efforts to address the problems identified by the regulator.
The six-month period will provide the interim management with an opportunity to assess the company’s financial position, operational capacity, assets and liabilities, as well as its ability to meet regulatory obligations.
It is also expected to determine the steps required to improve electricity distribution and commercial performance across the areas served by the company.
The regulator’s concerns over insufficient assets relative to liabilities point to the financial pressure facing the company.
For electricity consumers, however, the key issue will be whether the intervention leads to improved service and more reliable electricity supply.
Customers across the country have continued to demand better electricity supply despite increases in electricity tariffs and repeated assurances from the government and industry regulators.
NERC has maintained that improved investment and stronger management are necessary to achieve better service delivery in the electricity sector.
The commission’s latest intervention could therefore serve as a test of whether direct regulatory action can help stabilise a struggling DisCo.
For now, the existing board members have been removed, while the newly appointed interim board is expected to begin work immediately.
NERC said the transition would remain under its supervision and that major changes to the company’s ownership, board or constitutional records would require its approval.