NERC Sets 12-Month Target for Interim Board to Turn Around KAEDC

NERC Sets 12-Month Target for Interim Board to Turn Around KAEDC

The Nigerian Electricity Regulatory Commission (NERC) has tasked the newly constituted Interim Board of Special Directors of Kaduna Electricity Distribution Plc (KAEDC) with implementing immediate operational interventions to reset the utility firm and steer it back toward sustainable growth within 12 months.

The directive was issued on Monday, August 17, 2026, by NERC Chairman, Dr. Musiliu Oseni, during an official address to members of the new board and the company’s Interim Administrator.

Reflecting on regulatory history, Dr. Oseni recalled that NERC had previously undertaken a similar intervention in 2024, which yielded significant performance gains for the Distribution Company (DisCo) prior to the handover back to its former investors.

“We expect a lot from you, and the Administrator will bring you up to speed to ensure that you meet the target within one year. Most importantly, we want to begin to see progress immediately,” Dr. Oseni charged the new leadership.

Critical Priority Areas

Dr. Oseni outlined the most pressing challenges demanding immediate intervention:

High Loss Profiles: Drastic reduction of Aggregate Technical, Commercial and Collection (ATC&C) losses.

Metering Deficit: Rapid acceleration of meter rollout across KAEDC’s franchise footprint.

Adding to the call, Director-General of the Bureau of Public Enterprises (BPE), Ayo Gbeleyi, urged management to aggressively leverage existing national metering initiatives to bridge the widespread metering gap.

On the board’s composition, NERC Commissioner for Legal, Licencing and Compliance, Dafe Akpeneye, noted that members were carefully chosen for their deep, multi-disciplinary expertise to ensure a successful turnaround.

Board Pledges Strategic Realignment

Accepting the mandate, Chairman of the newly appointed board, Dr. Abdullahi Garba, expressed full commitment to working hand-in-hand with NERC and the BPE.

He pledged to tackle lingering operational bottlenecks, shore up financial health, and position KAEDC as a viable, saleable asset and benchmark for excellence within the Nigerian Electricity Supply Industry (NESI).

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The directives given to the interim board include: having clear, trackable performance milestones to achieve measurable gains rapidly; ensuring disciplined utilization of funds to satisfy performance obligations; leverage collective industry knowledge to restore KAEDC’s market credibility and maintain close alignment with both NERC and BPE throughout the tenure.

Background to the Intervention

The regulatory takeover follows NERC’s issuance of Order No. NERC/2026/08, which formally dissolved KAEDC’s previous Board of Directors over persistent defaults on electricity market obligations and failure to achieve minimum regulatory performance benchmarks.

To steer the utility through the transition, the Commission inaugurated the five-member Interim Board led by Dr. Abdullahi Garba for an initial 12-month tenure, alongside Interim Administrator Abubakar Umar Hashidu, who has been appointed for a six-month term to lead day-to-day operations.

 

Victor Ezeja, a journalist, and scholar
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Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X

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