In what appears to be retaliation, the Kaduna Electric Company on Saturday announced that it has disconnected power to the Kaduna State Government House and other state offices due to unpaid bills.
The company’s Head of Corporate Communication, Abdulazeez Abdullahi, announced the disconnection after efforts to resolve the issue through consultations and reconciliations failed.
The controversial move is coming on the heels of the Kaduna State Internal Revenue Service had mid last week sealed up the headquarters of the Kaduna Electricity Distribution Company, over N600 million in unpaid taxes on August 2, 2024.
According to the Executive Chairman of the service, Jerry Adams, the sealing up of Kaduna Electric is an exercise of its vested powers under Section 104 (1) & (4) of the Personal Income Tax Act, 2011 and Section 37 (3) & (4) of the Kaduna State Tax Codification and Consolidation Law, 2020.
But in a counter move, the spokesperson of Kaduna Electric announced the disconnection saying the unpaid balance for electricity consumed by the state government from January to July 2024 is N1, 166,856,991.87.
However, historical debt brings the total to N2, 943,060,116.77. He noted that the debt remains substantial despite paying N256, 920,963.88 on May 9, 2024, covering electricity consumed from September to December 2023.
Abdullahi stated, “Kaduna Electric disconnected power after repeated attempts to address the payment issues, including several consultations with state officials.” He noted that other states under the Kaduna Electric franchise, namely Sokoto, Kebbi, and Zamfara, have maintained good standing by regularly meeting their payment obligations.
“Kaduna Electric issued a disconnection notice on July 21, 2024, and the Office of the Governor received it on July 22, 2024. After exhausting all other avenues for resolving the payment issue, the company emphasised that the disconnection was a last resort. This move underscores Kaduna Electric’s need to meet its financial obligations amidst broader challenges in the electricity sector.
“The Nigerian Electricity Regulatory Commission (NERC) intervened by installing an Administrator and Special Board to oversee Kaduna Electric during a transitional period before the current investors took over. The Administrator agreed with the Kaduna Inland Revenue Service to pay N20 million monthly, including statutory tax payments.
The current management has honoured this agreement since the takeover.
“The situation highlights the urgent need for improved financial management and timely payments by government entities to avoid disruptions in essential services.”