The Nigerian Electricity Regulatory Commission has given Kaduna Electricity Distribution Plc a 12-month deadline to improve its operations, reduce electricity losses and close its persistent metering gap as the regulator intensifies efforts to rescue the troubled distribution company.
The directive was issued to the newly constituted Interim Board of Special Directors and the Interim Administrator of Kaduna DisCo, also known as KAEDC, as NERC seeks to restore the company to a financially and operationally sustainable path.
NERC Chairman, Musiliu Oseni, gave the charge while addressing members of the interim management team. The Commission subsequently shared details of the engagement in a statement posted on its official X account on Tuesday.
According to the regulator, the new board is expected to implement immediate measures capable of producing measurable improvements within its one-year mandate.
NERC said the intervention was necessary because Kaduna DisCo had continued to struggle with market obligations and key performance indicators required of electricity distribution companies.
The Commission specifically identified the company’s high Aggregate Technical, Commercial and Collection losses as one of its most pressing challenges. The regulator also pointed to the substantial gap between the number of electricity consumers in Kaduna DisCo’s franchise area and the number with functional meters.
Oseni told the new management that the Commission expected tangible progress rather than another prolonged period of planning.
The NERC Chairman recalled that the Commission had previously intervened in Kaduna DisCo in 2024, an intervention which, according to the regulator, resulted in significant improvement in the company’s performance before its former investors regained control.
He said the latest intervention should therefore build on the gains recorded during the earlier exercise while addressing the weaknesses that subsequently emerged.
The development comes amid a broader crisis confronting Nigeria’s electricity distribution sector, where technical losses, electricity theft, inadequate metering, weak revenue collection and poor remittance of market obligations have continued to place pressure on the financial position of DisCos.
Kaduna DisCo has been particularly affected by these problems. Earlier in August, NERC dissolved the company’s previous board following concerns over its financial and operational performance. Reports on the regulatory intervention indicated that the company had accumulated substantial market obligations and recorded very high technical, commercial and collection losses.
The regulator’s latest directive now shifts attention towards the practical task of turning the company around.
The Bureau of Public Enterprises is also expected to play a role in the recovery process. Its Director-General, Ayo Gbeleyi, urged the new management to take advantage of existing government-backed metering programmes to rapidly increase the number of metered customers across Kaduna DisCo’s network.
Improved metering is considered crucial to addressing some of the longstanding challenges in the power distribution business. With more customers properly metered, electricity consumption can be more accurately recorded, disputes over estimated billing can be reduced and DisCos can improve their ability to collect revenue.
For Kaduna DisCo, the metering challenge is particularly important because weak customer measurement can compound revenue losses and make it difficult for the company to accurately account for electricity supplied to its network.
NERC Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, said the members of the interim board were selected because of their professional experience and expertise relevant to the company’s turnaround.
The five-member board is chaired by Abdullahi Garba, who pledged that the team would work closely with NERC and the Bureau of Public Enterprises to address the distribution company’s financial and operational difficulties.
Garba said the board’s responsibility extended beyond stabilising the company in the short term. He explained that the ultimate objective was to improve the utility’s viability and make it attractive to prospective investors.
The board also intends to strengthen financial discipline, improve operational efficiency and ensure that available funds are used prudently.
Garba said the team wanted Kaduna DisCo to become a model for improved performance within Nigeria’s electricity supply industry.
The appointment of the interim board followed NERC Order No. NERC/2026/08, under which the Commission dissolved the company’s previous board after repeated failures to meet market obligations and prescribed performance requirements.
The regulatory action represents another major intervention in the history of Kaduna DisCo. NERC had previously taken steps to restructure the company in 2024 after it faced serious financial difficulties. At the time, the regulator dissolved the board and appointed an administrator as part of efforts to stabilise the utility and facilitate the search for a new core investor.
The latest arrangement provides for Abubakar Umar Hashidu to serve as Interim Administrator for an initial six-month period. He will work with the interim board to manage the company’s day-to-day affairs and implement the regulator’s turnaround directives.
The current intervention also comes against the background of Kaduna DisCo’s substantial financial obligations. Recent reports citing NERC’s regulatory order put the company’s cumulative market obligations at about ₦456.5bn as of May 2026, including significant liabilities to the Nigerian Bulk Electricity Trading Plc and the electricity market operator.
The regulator’s concerns are not limited to debt. Performance data cited in reports on the intervention showed that Kaduna DisCo’s Aggregate Technical, Commercial and Collection losses had risen to about 71.88 per cent during the relevant review period, highlighting the scale of the challenge confronting the new management.
The company therefore faces the difficult task of simultaneously improving electricity supply operations, reducing energy losses, increasing collections, expanding metering and meeting its obligations within the Nigerian Electricity Supply Industry.
NERC is expected to monitor the board’s progress closely throughout its one-year mandate. The Commission’s emphasis on immediate results suggests that the new management will be judged not merely by the plans it develops but by measurable changes in the company’s operational and financial performance.
For electricity consumers within Kaduna DisCo’s franchise area, the success of the intervention could have wider implications. Better metering could reduce reliance on estimated billing, while lower technical and commercial losses could improve the utility’s financial position and create room for more reliable electricity distribution.
However, the turnaround will require sustained investment, stronger revenue collection, effective enforcement against energy theft, improved infrastructure and cooperation between the DisCo, regulators, customers and other stakeholders.
NERC’s one-year deadline has therefore placed significant responsibility on the interim board and administrator. Their immediate challenge is to reverse years of financial and operational weaknesses, restore confidence in Kaduna DisCo and demonstrate that the company can operate on a more sustainable footing.
The regulator’s objective is ultimately to ensure that Kaduna DisCo returns to a stable growth trajectory while strengthening its ability to provide reliable electricity services and meet its obligations within the country’s electricity market.