The Kaduna Electric Distribution Company has disconnected power supply to the Kaduna State Government House and other state government buildings due to unpaid bills totalling N2.9 billion.
According to a statement issued on Friday by Kaduna Electric’s Head of Corporate Communication, AbdulAzeez Abdullahi, the company attempted to settle the matter several times, including meetings with state officials, before sending the disconnection notice on July 21.
According to reports, the Kaduna State Internal Revenue Service has sealed the Kaduna Electricity Distribution Company over a N600 million tax obligation.
Speaking to reporters after the exercise in the early hours of Friday, KADIRS Executive Chairman Jerry Adams stated that the operation was carried out in accordance with a court order to stop KAEDCO from incurring obligations to the state.
Adams indicated that the N600 million tax debt spanned from 2015 to 2022, when they completed all reconciliations, with KAEDCO agreeing to pay a significant portion of the liability.
The executive chairman, however, bemoaned, “Till this moment, since last year that the liability was established, KAEDCO has not met what it committed to do.
“We are backed by the law to seal and take over their premises in order to ensure compliance, and that is what we executed this morning.”
However, according to the Kaduna Electric statement, the outstanding balance for electricity consumed from January 2024 to July 2024 alone amounted to a staggering one billion, one hundred and sixty-six million, eight hundred and fifty-six thousand, nine hundred and ninety-one naira, and eighty-seven kobo (N1,166,856,991.87).
According to KAEDCO, this amount, combined with prior debt, has left the state government with a massive debt of N2,943,060,116.77.
It further stated that, despite a recent payment of N256,920,963.88 made on May 9, 2024, for energy utilised between September 2023 and December 2023, the Kaduna State Government’s debt is still extremely high.
“This payment, though substantial, has not been enough to clear the accumulated arrears,” it said.
Kaduna Electric’s decision to cut power supply occurred after many attempts to resolve payment concerns, including meetings with state officials.
Other states under the Kaduna Electric franchise, including Sokoto, Kebbi, and Zamfara, have kept their accounts in good standing by meeting their power payment and other payback commitments to Kaduna Electric on a regular basis.
According to the statement, a formal disconnection notice was issued on July 21, 2024, and received by the Governor’s Office on July 22, 2024.
The move, it claimed, reflected the company’s need to meet its own financial responsibilities in the face of greater issues in the electrical sector.
Kaduna Electric stated that the disconnection was a last resort after all other options for resolving the financial issue had been exhausted.
The company is currently focussing on meeting its commitments to the electrical market, as well as guaranteeing operational stability and company sustainability.
