Afrexim takes over Kaduna electric over ₦456.5bn market debt, financial insolvency
Regulator dissolves board, appoints interim management and begins process for new core investor
The Nigerian Electricity Regulatory Commission (NERC) has moved to take control of Kaduna Electricity Distribution Plc (KAEDC).
This follows a severe deterioration in the company’s financial and operational position, culminating in market obligations estimated at ₦456.5 billion.
Under Interim Order No. NERC/2026/086, the Commission dissolved the KAEDC Board of Directors with effect from August 10, 2026.
NERC said the intervention was necessary after KAEDC recorded persistent financial and operational weaknesses.
They threaten KAEDC’s ability to meet obligations to NESI and to sustain reliable customer service.
A major concern is the accumulation of more than ₦118.6 billion in additional market debt under ASI Engineering Limited as of May 2026. This has pushed KAEDC’s total market obligations to approximately ₦456.5 billion, placing further pressure on the already financially distressed utility. NERC.
The Commission also cited KAEDC’s weak market remittance performance, noting that the company remitted only 41.93 per cent of its adjusted market invoices in 2025.
The distribution company’s operational performance was equally troubling. Its Aggregate Technical, Commercial and Collection (ATC&C) losses stood at 71.88 per cent, indicating that a significant proportion of electricity supplied into its network was either lost technically, commercially or through poor revenue collection.
Investment in network infrastructure also fell substantially below regulatory requirements. According to NERC, KAEDC invested only ₦2.48 billion in 2025, compared with a capital expenditure requirement of ₦24.51 billion. The resulting investment gap raises concerns over the distributor’s ability to maintain and expand its network, improve reliability and reduce losses. Customer metering remains another major challenge, with metering coverage standing at less than 36 per cent.
Interim governance by NERC
Interim management takes charge.
Moreover, to prevent disruption to electricity supply and maintain operational stability, NERC has constituted an interim board of Special Directors to oversee the affairs of KAEDC.
The interim board will be chaired by Dr. Abdullahi Garba.
Dr. Abubakar Umar Hashidu has been appointed Administrator for an initial six-month term.
The intervention aims to provide immediate stability as efforts address the company’s financial and operational weaknesses.
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Rather than allowing the distributor’s financial distress to continue unchecked, the regulatory action effectively creates a transition framework under which KAEDC’s operations can be stabilized while a longer-term ownership solution is pursued.
Afrexim to coordinate investor search
During the restructuring, Afrexim will coordinate a transparent 12-month process to secure a capable replacement core investor for Kaduna Electric. The investor selection aims to attract a financially capable and technically competent investor who can inject fresh capital, strengthen governance, upgrade infrastructure, reduce network losses, and improve electricity supply and customer service. The focus keyphrase NERC will be included naturally where it fits the context.
The development represents another major regulatory intervention in Nigeria’s power distribution sector, where several DisCos have faced persistent challenges arising from liquidity constraints, weak revenue collection, high technical and commercial losses, inadequate capital expenditure and market debt.
For Kaduna Electric, the immediate priority will be to stabilize operations and restore financial discipline while protecting electricity consumers from further deterioration in service.
The intervention also underscores the growing regulatory emphasis on financial sustainability and operational accountability under the Electricity Act 2023, particularly as Nigeria seeks to attract private capital into the electricity value chain.
Industry observers will be watching closely to see whether the transition can deliver the investment and management capacity required to reverse KAEDC’s high loss profile, expand metering, improve collections and ultimately restore the distributor to a financially sustainable footing.
For customers across Kaduna, Kebbi, Sokoto and Zamfara, the success of the intervention will ultimately be measured not only by improved financial indicators but by more reliable electricity supply, better customer service, expanded metering and a reduction in estimated billing.
