The Nigerian Electricity Regulatory Commission (NERC) has initiated the sale of Kaduna Electricity Distribution in an effort to improve the company’s operations and financial performance.
Kaduna Electricity Distribution is the sixth-largest electricity distributor in Nigeria and is undergoing this transition amid significant financial challenges, with an accumulated debt of $130 million to entities such as the Nigerian Bulk Electricity Trader and other power generation firms. The company’s financial challenges have been attributed to a lack of adequate operational capital and changes to consumer tariffs, which have made it challenging for Nigerian utilities to enhance revenue generation.
Under a newly enacted national law in 2023, NERC has dissolved the utility’s board and appointed an interim administration, paving the way for the sale to new owners and investors.
Prior to this development, Kaduna Electricity Distribution was owned and operated by the African Export-Import Bank, Fidelity Bank and the Nigerian Bureau of Public Enterprises. Established in 2013 after the privatization of the Power Holding Company of Nigeria, the utility serves consumers in four Nigerian states.
