On Monday, the Nigerian Electricity Regulatory Commission (NERC) announced the dissolution of the board of directors of Kaduna Electricity Distribution Company (Kaduna Disco) due to the Disco’s inability to settle a debt of N110 billion owed to the Nigeria Electricity Supply Industry. The regulatory order, dated January 1, 2024, and signed by NERC’s Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni, revealed that the board of the company had been dissolved.
Kaduna Disco is one of five Discos that faced takeovers by their promoters after the core investors failed to repay borrowed funds used to acquire the companies during privatization in 2013. The Federal Government had earlier announced the planned takeover of Kano, Benin, and Kaduna electricity distribution companies by Fidelity Bank Plc.
In its regulatory order, NERC disclosed that Kaduna Disco owed N110 billion to the Nigerian Bulk Electricity Trade and the Market Operator of the Transmission Company of Nigeria from 2015 until the present. Despite the receivership, led by Afrexim bank, being given notice, and the dissolution of the board, the company failed to secure a new owner to meet its financial obligations.
NERC, exercising its powers under Section 75 of the Electricity Act, removed all directors of Kaduna Disco from office and dissolved the board. Umar Hashidu was appointed as the administrator of Kaduna Disco, responsible for managing the day-to-day affairs of the utility until the finalization of the sale of the undertaking to a new core investor. Special directors, including Alex A. Okoh, Kabir Adamu, Sharfuddeen Mahmoud, John Ayodele, and Rahila Thomas, were also appointed for governance purposes.
The commission emphasized that it would administer the sale of the undertaking based on the highest and best price offered. Meanwhile, Kaduna Disco announced the resumption of its new CEO, Umar Hashidu, who took over from Yusuf Yahaya. Hashidu’s appointment was marked by a handover ceremony at the company’s corporate headquarters in Kaduna, presided over by Dafe Akpaneye, the NERC Commissioner for Legal Licensing and Compliance.
