NERC Tells New Board to Reset Kaduna Disco in 12 Months
• Transfers oversight of Akwa Ibom electricity market to AKSERC
Emmanuel Addeh in Abuja
The Nigerian Electricity Regulatory Commission (NERC) has directed the newly constituted Interim Board of Special Directors of Kaduna Electricity Distribution Plc (KAEDC) to reset the troubled electricity distribution company and return it to a sustainable growth path within 12 months.
The Commission also announced the transfer of regulatory oversight of the electricity market in Akwa Ibom State from the federal regulator to the Akwa Ibom State Electricity Regulatory Commission (AKSERC), in line with the amended Constitution of the Federal Republic of Nigeria and the Electricity Act 2023, as amended.
The two interventions are part of broader regulatory measures aimed at improving the performance of the electricity market and strengthening state level participation in the sector.
Speaking at the meeting with the new board, NERC Chairman, Dr Musiliu Oseni, charged the new KAEDC leadership and Interim Administrator to deliver immediate and measurable improvements in the company’s operations.
Oseni recalled that NERC had undertaken a similar intervention in 2024, which led to significant improvements in the performance of the distribution company before its former investors subsequently resumed control.
“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,” he said.
He identified KAEDC’s high Aggregate Technical, Commercial and Collection (ATC&C) losses and significant metering deficit as two of the most critical challenges requiring urgent intervention.
Also speaking at the meeting, the Director General of the Bureau of Public Enterprises (BPE), Ayo Gbeleyi, drew the board’s attention to the various metering programmes available to KAEDC, urging the management to take advantage of the initiatives to close the metering gap across its franchise area.
NERC Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, said the members of the Special Board were selected based on their professional expertise and relevant skills required to address the challenges confronting the DisCo.
The Chairman of the board, Dr Abdullahi Garba, pledged that the board would work closely with NERC and BPE to resolve outstanding issues, strengthen KAEDC’s operational and financial performance and ultimately make the company viable, saleable and a model for improved performance in the Nigerian Electricity Supply Industry.
The board was also tasked with demonstrating measurable improvements in KAEDC’s performance, ensuring prudent and effective utilisation of funds and deploying its collective expertise to restore the company’s market performance.
NERC had, through Order No. NERC/2026/086, dissolved the Board of Directors of KAEDC following repeated failures to meet market obligations and other prescribed performance indices.
The Commission subsequently constituted a five member Interim Board of Special Directors, chaired by Garba, for an initial one year period, while Abubakar Umar Hashidu was appointed Interim Administrator for an initial six month period to drive the reset of the Disco.
Meanwhile, NERC has issued an order transferring regulatory oversight of the electricity market in Akwa Ibom State to AKSERC, following the state’s decision to establish and regulate its intrastate electricity market.
Under the Electricity Act 2023, NERC retains regulatory responsibility for inter state and international electricity generation, transmission, supply, trading and system operations.
However, the law provides a framework for states seeking to establish and regulate intrastate electricity markets, subject to a formal notification to NERC and a request for the transfer of regulatory authority over electricity operations within the state.
Following the completion of the required process by Akwa Ibom State, NERC directed Port Harcourt Electricity Distribution Plc (PHEDC) to incorporate a subsidiary, PHEDC SubCo, which will assume responsibility for intrastate electricity supply and distribution in Akwa Ibom State.
The Commission directed PHEDC to complete the incorporation of the subsidiary within 60 days from August 18, 2026.
The new subsidiary is also required to apply for and obtain a licence from AKSERC to undertake intrastate electricity supply and distribution in the state.
NERC said all transfers envisaged under the order are expected to be completed by February 17, 2027, marking the full transition of regulatory oversight of the intrastate electricity market to the Akwa Ibom State regulator.
