The Nigerian Electricity Regulatory Commission (NERC) has approved ASI Engineering Limited’s acquisition of a 60 percent equity stake in Kaduna Electricity Company (Kaduna Electric).
This decision follows the company’s significant debt of N110 billion ($130 million) owed to various entities, including the Nigerian Bulk Electricity Trader and power generation firms.
ASI Engineering aims to upgrade Kaduna Electric’s infrastructure to improve energy access, reliability, and efficiency in Northern Nigeria. The acquisition aligns with the government’s efforts to privatise electricity distribution companies, boosting revenue and attracting investment into Nigeria’s economy.
Kaduna Electric disclosed the approval on its X page on Friday, July 12, 2024.
The statement highlighted ASI’s commitment to collaborating with stakeholders, including state governments, to create sustainable solutions tailored to the region’s needs. The company plans to modernize the electricity distribution network and implement innovative energy management solutions, enhancing customer satisfaction.
The acquisition is seen as a significant milestone for ASI Engineering, marking its expansion into Nigeria’s power sector. It reflects the company’s vision to make Kaduna Electric a national leader in electricity distribution, driving sustainable development and improving the quality of life for residents, businesses, and industries in its franchise states—Kaduna, Zamfara, Sokoto, and Kebbi.
NERC, alongside the Bureau of Public Enterprises (BPE), was appreciated for facilitating the approval. The acquisition agreement terms include prioritizing investments in infrastructure upgrades, employee training, and community engagement initiatives to create lasting value for all stakeholders.
This move comes after NERC’s report indicated Kaduna Electric’s financial struggles, leading to its classification as a ‘failing licensee.’ The federal government’s strategy to privatize assets aims to generate N298.4 billion in revenue in 2024, addressing public debts and stimulating macroeconomic growth.
