Federal Government Takes Drastic Measures To Resolve N110bn Debt, Considers Kaduna Electric Sale

After the ceremony, Okpaneye expressed gratitude to the former Managing Director for his dedicated efforts over the past 18 months in advancing the company.

He urged Dr. Hashidu to leverage the available talent and resources to propel Kaduna Electric to even greater achievements.

Amid these developments, the Federal Government, through the NERC, is considering the planned sale of Kaduna Electric, the sixth-largest power distribution utility, which is grappling with a debt of N110 billion ($130 million).

The decision was prompted by the company’s failure to achieve profitability under the management of lenders who took over less than two years ago.

Nigeria currently has 11 power distribution companies facing challenges in remaining profitable due to a lack of capital and the imposition of sub-economic tariffs by NERC.

Kaduna Electric, one of the 18 successor companies established after the privatization of the defunct Power Holding Company of Nigeria in 2013, operates in four northern states.

According to NERC, Kaduna Electric owes N110 billion to various companies, including the Nigerian Bulk Electricity Trader and power generation firms. Classified as a ‘failing licensee,’ NERC has the authority to dissolve its board under a law passed last year.

In July 2022, Afreximbank and Fidelity Bank took control of Kaduna Electric, but efforts to enhance its financial performance have faced challenges.

The Nigerian government, holding a 40% stake in the company through its Bureau of Public Enterprises, is addressing the situation by appointing an administrator and special directors to oversee Kaduna Electric temporarily and facilitate the sale of its assets to the highest bidder.