The Kaduna Electricity Distribution Company has disconnected the power supply to the Kaduna State Government House and other state government facilities due to an outstanding debt of N2.9 billion. The company had made several attempts to resolve the issue, including consultations with state officials, before issuing a disconnection notice on July 21.
According to AbdulAzeez Abdullahi, the Head of Corporate Communication at Kaduna Electric, the outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to N1.1 billion, while the total debt stands at N2.9 billion. Despite a recent payment of N256.9 million made on May 9, 2024, for electricity consumed between September 2023 and December 2023, the debt remains significantly high.
kaduna electric tax liability
The Kaduna State Internal Revenue Service (KADIRS) has, however, sealed the Kaduna Electricity Distribution Company over a N600 million tax liability, which dates back to 2015. The Executive Chairman of KADIRS, Jerry Adams, said that the operation was an execution of a court order to restrain KAEDCO over the liability.
The standoff between Kaduna Electric and the Kaduna State Government has led to a stalemate in the payment of electricity bills. The company’s decision to disconnect power was a last resort after all other avenues for resolving the payment issue had been exhausted.
Kaduna Electric has emphasized that the disconnection was necessary to meet its own financial obligations amidst the broader challenges facing the electricity sector. The company has also highlighted the urgent need for improved financial management and timely payments by government entities to avoid disruptions in essential services.
The disconnection of power has left the state government with no choice but to find a solution to settle its outstanding debt. The public and stakeholders are eagerly awaiting further developments on how the state government will address the arrears and restore power to the affected government offices.
In contrast, other states under the Kaduna Electric franchise, including Sokoto, Kebbi, and Zamfara, have maintained their accounts in good standing and regularly meet their electricity payment obligations with Kaduna Electric. The company’s statement urged the Kaduna State Government to take immediate action to clear its outstanding debt and restore power to its facilities.
The Nigerian Electricity Regulatory Commission (NERC) had previously intervened in the matter by installing an administrator and special board to oversee the company during a transitionary period prior to an official takeover by the current investors.
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