The Nigerian Electricity Regulatory Commission (NERC) took decisive control of Kaduna Electricity Distribution Plc (KAEDC) on Monday, August 10, 2026, dissolving the utility’s Board of Directors and stripping core investor Africa Smart Investment (ASI) of management control following ₦456.5 billion in accrued market debt and persistent operational default.
The regulatory action was issued at NERC Headquarters in Abuja via Order No. NERC/2026/086, titled “Order on the Regulatory Intervention in Kaduna Electricity Distribution Plc Pursuant to the Electricity Act 2023.”
Invoking Sections 75 through 79 of the Electricity Act 2023, the commission removed all sitting directors to prevent a collapse of electricity distribution across Kaduna, Kebbi, Sokoto, and Zamfara states.
The Interim Administrator, Dr. Abubakar Umar Hashidu, KAEDC’s incumbent Managing Director/CEO, was retained as Administrator to manage daily operations for an initial six-month period.
A seven-member board of special directors was installed, chaired by Dr. Abdullahi Garba, with institutional representation from the Bureau of Public Enterprises (BPE). NERC directed Afreximbank to lead an open, competitive bid to select a qualified core investor within 12 months to replace ASI Engineering Limited.
The intervention follows a joint assessment by NERC, the BPE, and major financial stakeholders. Regulatory filings show that as of May 2026, KAEDC’s liabilities included; ₦415.5 Billion owed to the Nigerian Bulk Electricity Trading Plc (NBET), ₦41.0 Billion owed to the Nigerian Independent System Operator (NISO), ₦14.26 Billion in statutory and non-market third-party obligations and ₦118.6 Billion in new debt accumulated between June 2024 and May 2026 under ASI’s operational control.
ASI Engineering Limited assumed operational control of KAEDC in June 2024 after conditionally acquiring a 60 percent equity stake alongside technical partner Akanksha Power and Infrastructure Limited. However, NERC noted that the core investor repeatedly failed to fulfill critical takeover requirements, including providing acceptable bank guarantees to NBET and NISO, injecting adequate capital, or delivering a credible loss-reduction plan.
A final review meeting held at NERC Headquarters led to the rejection of ASI’s request for a 24-month extension, with regulators citing the continuous financial exposure to the Nigerian Electricity Supply Industry (NESI).
Dr. Hashidu has been tasked with delivering a costed 12-month stabilization plan within 60 days. The plan must address cash-flow controls, rapid metering deployment, energy accounting, and network stability.
New equity suitors bidding for KAEDC will be vetted on technical competence, verified working capital, transparent beneficial ownership, and a binding five-year utility turnaround plan.
