The Nigerian Electricity Regulatory Commission (NERC) has taken decisive action, dissolving the board of directors of Kaduna Electricity Distribution Company (Kaduna Disco) on Monday.
This move is a result of the Disco’s inability to settle a substantial N110bn debt owed to the Nigeria Electricity Supply Industry, as indicated in a regulatory order dated January 1, 2024, signed by NERC Chairman Sanusi Garba and Vice Chairman Musiliu Oseni.
Kaduna Disco, one of five Discos taken over by promoters due to core investors’ failure to repay borrowed funds from the 2013 privatization, faced financial challenges leading to the dissolution of its board.
The company’s Managing Director, Yusuf Yahaya, resigned on Saturday.
In its order, NERC outlined Kaduna Disco’s outstanding debt to the Nigerian Bulk Electricity Trade and the Market Operator of the Transmission Company of Nigeria since 2015.
The regulatory commission appointed Umar Hashidu as the administrator of Kaduna Disco, exercising powers vested in it by Section 75 of the Electricity Act.
The administrator, Umar Hashidu, will serve as the de facto Chief Executive Officer, overseeing the utility’s day-to-day affairs until the completion of the sale to a new core investor.
The commission also appointed special directors, including Alex A. Okoh as Chairman, to work with the administrator for governance purposes.
The sale of Kaduna Disco will be administered by NERC, considering the highest and best price offered for the undertaking in accordance with the Electricity Act.
Meanwhile, Kaduna Disco announced the resumption of its new CEO, Umar Hashidu, who took over from Yusuf Yahaya in a brief handover ceremony conducted at the company’s headquarters in Kaduna.
The NERC Commissioner for Legal Licensing and Compliance, Dafe Akpaneye, presided over the ceremony, acknowledging the former CEO’s contributions and urging the new leadership to propel Kaduna Electric to greater heights.
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