The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of Kaduna Electricity Distribution Plc (KAEDC) and constituted an interim board of Special Directors to oversee the company as the regulator begins a fresh process to secure a replacement core investor.
The regulatory intervention places KAEDC under a new governance structure led by Dr. Abdullahi Garba as chairman, while Dr. Abubakar Umar Hashidu has been appointed administrator and Special Director. Hashidu will initially serve for six months, subject to review by NERC, and will oversee the company’s day-to-day operations during the transition.
The other members of the interim board are Engr. Francis U. Agoha, Mr. Aliyu E. Aliyu, Major General Henry E. Ayamasaowei (rtd.), Dr. Haliru Dikko and Mr. Ayodeji A. Gbeleyi, representing the Bureau of Public Enterprises (BPE).
The dissolution of the previous board is the central element of NERC’s latest intervention. It effectively removes the company’s existing board from governance while creating an interim structure that will manage KAEDC until a new ownership and management arrangement is established.
NERC has also withdrawn the Know-Your-Licensee (KYL) approvals previously issued to members of KAEDC’s management team. The affected management personnel have been directed to present themselves to the Commission for revalidation.
The regulator’s intervention is linked to a broader plan to change KAEDC’s core ownership. NERC said Africa Export-Import Bank (Afreximbank), working with the Commission, will lead a transparent 12-month competitive process to identify a replacement core investor with the financial strength and technical competence required to operate the distribution company.
KAEDC Poor Performance
The latest board dissolution is not, however, the first time NERC has removed KAEDC’s board. In January 2024, the Commission dissolved the company’s board and appointed Hashidu as administrator after citing KAEDC’s persistent failure to meet its financial obligations in the electricity market. NERC said at the time that KAEDC owed more than N110 billion to the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator.
NERC’s 2024 Annual Report confirms that the Commission intervened because of what it described as pervasive failure and non-performance by Kaduna DisCo. The Commission said it had engaged the company’s management, board and shareholders several times to address its deteriorating performance without achieving the necessary improvement. It subsequently dissolved the board under Section 75 of the Electricity Act 2023, appointed an administrator and special directors, and invoked its powers to facilitate the eventual sale of the undertaking to a new core investor.
The new interim board is expected to provide governance while the investor-selection process takes place. Hashidu’s appointment also provides continuity because he previously served as administrator following NERC’s 2024 intervention. His continued involvement means the regulator is retaining an administrator with existing knowledge of KAEDC’s operations while it searches for a new core investor.
The intervention comes as the Nigerian electricity distribution sector continues to grapple with weak liquidity, market-payment obligations, inadequate infrastructure and the difficulty of attracting sufficient private capital into the DisCos.
