Politics
Electricity Sector Turmoil: Kaduna DisCo Board Dismantled By NERC Due To N182.16bn Debt
Electricity Sector Turmoil: Kaduna DisCo Board Dismantled By NERC Due To N182.16bn Debt....KINDLY READ THE FULL STORY HERE▶
The Nigerian Electricity Regulatory Commission (NERC) has taken decisive action by dissolving the board of directors of the Kaduna Electricity Distribution Company (KEDC) due to its failure to meet market obligations totaling N182.16 billion over the past four years. This amount encompasses a N51.9 billion market remittance shortfall, N25 billion minimum capital expenditure requirements, and N11.46 billion operations expenditure requirements for the year 2023…..CONTINUE READING
In an official order spanning 9 pages and signed by Chairman Sanusi Garba and Vice Chairman Musiliu Oseni, effective from January 1, 2024, Dr. Umar Abubakar Hashidu has been appointed as the Sole Administrator of KEDC. The newly constituted board includes Mr. Alex Okoh, Chairman; Kabir Adamu; Sharfuddeen Mahmoud; John Ayodele; and Rahila Thomas as non-executive members.
NERC’s analysis reveals that KEDC is currently grappling with severe liquidity challenges, casting doubt on its commercial viability and ability to continue participating in the market. Despite regulatory initiatives and government interventions, the company’s management has failed to present a clear pathway for capital injection, operational efficiency, and sustainability.
The regulator emphasized that KEDC consistently violated its obligations to the market, contravening the Electric Power Sector Reform Act and the terms and conditions of its electricity distribution license. Despite ample opportunities provided to address the utility’s performance issues, the management, board, and shareholders have been unable to rectify the situation.
The order further states that KEDC will be sold to investors at the highest and best price. Meanwhile, Dr. Umar Abubakar Hashidu has assumed the role of Chief Executive Officer of Kaduna Electric, succeeding Engr. Yusuf Usman Yahaya, who resigned the previous week. The transition was formalized through a brief handover ceremony at the company’s corporate headquarters in Kaduna, presided over by Mr. Dafe Okpaneye, the NERC Commissioner for Legal Licensing and Compliance.
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