Overview

The document is an official regulatory order issued by the Nigerian Electricity Regulatory Commission (NERC) on 10 August 2026, concerning the regulatory intervention in Kaduna Electricity Distribution Plc (KAEDC). The order is made pursuant to the Electricity Act 2023 and follows an inquiry and consultation with key industry stakeholders, including the Bureau of Public Enterprises (BPE). The Commission finds that KAEDC is in a grave financial and operational state, characterized by prolonged regulatory and market defaults, inadequate investment, weak operational and commercial performance, insufficient assets relative to liabilities, and an inability to present a credible pathway to sustainable recovery. As of May 2026, KAEDC's cumulative market obligation since privatization stood at approximately ₦456.5 billion, comprising ₦415.5 billion due to the Nigerian Bulk Electricity Trading Plc (NBET) and ₦41 billion due to the Nigerian Independent System Operator (NISO). Additionally, KAEDC has accrued other non-market statutory and third-party obligations totaling ₦14.26 billion. Since the takeover of operations by ASI Engineering Limited (ASI) in June 2024, the Licensee has accrued additional market debt in excess of ₦118.6 billion as of May 2026. The Core Investor and KAEDC have persistently failed to provide acceptable and credible payment bank guarantees in compliance with the Vesting Contract and the Market Rules of the Nigerian Electricity Supply Industry (NESI). The Core Investor has also failed to present a credible payment plan for these liabilities. KAEDC paid only 41.93% of adjusted market invoices, leaving a market shortfall of approximately ₦46.71 billion in the review period ending 31 December 2025. This poor performance is directly linked to KAEDC's high Aggregate Technical Commercial and Collection Losses (ATC&C) of 71.88%, meaning that in the 2025 review period, KAEDC was only able to account for 28.2% of the energy received and delivered to end-use customers. The document includes a table showing KAEDC's remittance performance for each month of 2025, with monthly remittance performance ranging from 32.11% in January to 59.92% in February. ASI has also failed to uphold commitments for capital injection, with actual capital expenditure in 2025 of approximately ₦2.48 billion against a minimum provision of ₦24.51 billion, recording a 10% CAPEX performance. KAEDC's meter coverage of its end-use customer population has remained abysmally low, ranging between 33.26% and 35.54% since takeover by ASI, despite several interventions to support meter deployment. The Commission's conditional No-Objection of 18 January 2024 approved the proposed acquisition of 60% equity in KAEDC by ASI, working with its nominated technical partner, Akanksha Power and Infrastructure Limited (APIL), subject to a transitional period and fulfilment of certain conditions, which have not been met. The order likely outlines further regulatory interventions, but the document text provided is incomplete.

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