Africa Export-Import Bank is set to spearhead a competitive process to identify a replacement core investor for Kaduna Electricity Distribution Plc, following a decisive regulatory reset by the Nigerian Electricity Regulatory Commission that dissolved the utility’s board and installed interim governance.
The move comes as KAEDC grapples with cumulative market obligations of approximately ₦456.5 billion as of May 2026 — comprising ₦415.5 billion owed to the Nigerian Bulk Electricity Trading Plc and ₦41 billion to the Nigerian Independent System Operator — plus an additional ₦118.6 billion in market debt accumulated since its current core investor took operational control.
ASI Engineering Limited has been the core investor since June 2024, after receiving conditional NERC approval earlier that year for a 60% equity acquisition. The Federal Government, through the Bureau of Public Enterprises, retains the remaining approximately 40% stake, consistent with the standard post-privatisation structure of Nigerian distribution companies. However, NERC and BPE have stated that ASI failed to fully meet the conditions attached to the takeover and that the shareholding arrangements were never finalised, leaving material takeover requirements outstanding despite ASI’s effective operational control.
In its order effective 10 August 2026, NERC dissolved KAEDC’s existing board and appointed an interim board of special directors chaired by Dr. Abdullahi Garba. The incumbent Managing Director, Dr. Abubakar Umar Hashidu, will serve as Administrator for an initial six-month term to ensure continuity of electricity distribution services. A BPE representative sits on the interim board.
Afrexim will coordinate an openly competitive and transparent process to secure a fit, technically competent and financially capable replacement core investor, with a target completion within 12 months. Prospective investors must demonstrate adequate working capital, transparent beneficial ownership, technical capacity to turn around a failing utility, credible support from leading financial institutions, and a robust five-year business plan covering metering, network investment, loss reduction, market remittances and legacy liabilities. The preferred bidder will also need to provide cash-backed funding for the first two years of the capital programme and Tier-1 bank guarantees covering at least three months of market invoices.
The intervention follows high Aggregate Technical, Commercial and Collection losses of 71.88% in 2025, remittance performance of only 41.93%, persistently low metering coverage near 34%, and inadequate capital expenditure. NERC determined that further delay risked unplanned service disruption and systemic pressure on the wider electricity market.
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