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Kaduna Electricity Distribution Company’s board of directors has been dissolved by the Nigerian Electricity Regulatory Commission (NERC) due to the Disco’s inability to settle a debt of N110 billion owed to the Nigeria Electricity Supply Industry. The dissolution was announced in a regulatory order dated January 1, 2024, signed by NERC Chairman Sanusi Garba and Vice Chairman Musiliu Oseni.

Kaduna Disco, one of the five Discos taken over by their promoters after core investors failed to repay borrowed funds used for the company’s acquisition during privatization in 2013, has been facing liquidity challenges, leading to the dissolution of its board. This move is part of an industry-wide effort to address financial distress within the Nigerian power sector.

In a restructuring notice, the Bureau of Public Enterprises and NERC also announced the takeover of other electricity distribution companies and the appointment of interim managing directors to prevent insolvency and mitigate financial instability within the sector.

The commission has appointed Umar Hashidu as the administrator of Kaduna Disco in line with the Electricity Act. Hashidu has taken over as the Chief Executive Officer of Kaduna Electric, succeeding Yusuf Yahaya. During a handover ceremony, Dafe Akpaneye, NERC Commissioner for Legal Licensing and Compliance, expressed gratitude to the former CEO and urged Hashidu to leverage available talent and resources to propel Kaduna Electric to new heights.

Going forward, NERC will oversee the sale of the undertaking in accordance with the Electricity Act, ensuring the highest and best price is obtained for the undertaking. This significant development underscores the challenges and reforms within Nigeria’s power sector, with implications for both the industry and consumers. As the sector continues to undergo transformations, the appointment of an administrator and the restructuring of Kaduna Disco mark a pivotal moment in the Nigerian power industry’s trajectory.

The announcement of these measures by NERC underscores the critical need for financial accountability and stability within Nigeria’s power sector. As the industry grapples with these ongoing challenges, the actions taken by NERC aim to pave the way for a more sustainable and efficient electricity distribution system in Nigeria.