Umar Abubakar Hashidu has officially taken the helm as the new Chief Executive Officer (CEO) of Kaduna Electric, marking a pivotal moment for the power distribution giant.
The handover ceremony, held at the corporate headquarters in Kaduna on January 8, 2024, was overseen by Commissioner Dafe Okpaneye of the Nigerian Electricity Regulatory Commission (NERC).
Expressing gratitude for the former Managing Director’s dedicated service, Okpaneye urged Dr. Hashidu to leverage the wealth of talent and resources at his disposal to propel Kaduna Electric to new heights of success.
However, amidst these positive changes, the Federal Government, through NERC, is contemplating a strategic move to sell Kaduna Electric. The company, grappling with a staggering debt of N110 billion ($130 million), has struggled to achieve profitability under recent management.
This decision follows the challenges faced by many of Nigeria’s power distribution companies, hampered by insufficient capital and sub-economic tariffs imposed by NERC. Kaduna Electric, operating in four northern states and established after the privatization of the Power Holding Company of Nigeria in 2013, now stands as the sixth-largest power distribution utility.
Despite efforts by the African Export-Import Bank (Afreximbank) and Fidelity Bank, who assumed control in July 2022, to enhance financial performance, Kaduna Electric remains in a precarious financial position. The Nigerian government, holding a 40% stake through the Bureau of Public Enterprises, further complicates the situation.
In response to the company’s dire financial state, NERC has taken decisive action by appointing an administrator and special directors to oversee Kaduna Electric temporarily. This move is aimed at facilitating the sale of its assets to the highest bidder, signaling a determined effort to revive and reshape the power sector in Nigeria.
