The Nigerian Electricity Regulatory Commission (NERC) has dissolved the board of directors of Kaduna Electricity Distribution Company (KAEDCO) due to the disco’s inability to settle a N110 billion debt owed to the Nigeria Electricity Supply Industry. NERC’s regulatory order, dated January 1, 2024, and signed by Chairman Sanusi Garba and Vice Chairman Musiliu Oseni, also revealed plans to sell the power firm.
Kaduna Disco is one of the five distribution companies (Discos) taken over by their funders after core investors failed to repay borrowed funds used for the acquisition during privatization in 2013. In July 2022, the Federal Government announced Fidelity Bank Plc’s planned takeover of Kaduna Disco, along with Kano and Benin electricity distribution companies.
The government had taken over Ibadan Disco through the Asset Management Corporation of Nigeria and restructured the management and board of Port Harcourt Disco to prevent imminent insolvency. NERC’s latest regulatory order follows the dissolution of Kaduna Disco’s board, with the company facing liquidity challenges.
The Managing Director of Kaduna Disco, Yusuf Yahaya, had resigned from the company on Saturday. The NERC order highlighted that the disco owes N110 billion to the Nigerian Bulk Electricity Trade and the Market Operator of the Transmission Company of Nigeria since 2015. The regulatory commission stated that the receivership, led by Afrexim Bank, had been given notice, and the failure to secure new ownership resulted in the removal of all directors and the dissolution of the board.
Umar Hashidu was appointed as the administrator of Kaduna Disco, responsible for managing day-to-day affairs until the completion of the sale to a new core investor. The move underscores the challenges faced by some Discos in meeting financial obligations and calls for interventions to ensure the stability of the electricity supply industry in Nigeria.
