Nigeria’s electricity regulator, Nigerian Electricity Regulatory Commission (NERC), has put up for sale Kaduna Electricity Distribution Company over a $130 million debt, less than two years after the lenders who took over failed to turn it around.
Nigeria has 11 power distribution companies but lack of capital and sub-economic tariffs imposed by the NERC make it difficult for the power distribution companies to remain profitable.
Kaduna Electric, Nigeria’s sixth largest power distribution utility, was taken over by African Export-Import Bank (Afreximbank) and local lender Fidelity Bank in July 2022 but they have struggled to improve its financial performance. The Nigerian government through its Bureau of Public Enterprises also owns a 40% stake.
NERC has appointed an administrator and special directors to manage Kaduna Electric and sell its assets to the highest bidder in the interim.
Nigeria, Africa’s most populous nation, Nigeria, has a power generation capacity of 12,500 megawatts, but only produces a fraction, leaving millions of households and businesses reliant on private generators.