In a dramatic turn of events, Kaduna Electric, the electricity distribution company, has disconnected the power supply to the Kaduna State Government House and other government facilities over an alleged N2.9 billion debt.
This action follows a move by the Kaduna State Internal Revenue Service (KADIRS) to seal the Kaduna Electricity Distribution Company (KAEDC) over N600 million in unpaid taxes.
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The disconnection, which took place on Friday, August 2, was announced in a statement on X (formerly Twitter) by Kaduna Electric. The company revealed that the debt had accumulated over seven months, from January to July, along with “historical arrears.”
Kaduna Electric described the decision to disconnect as a “last resort,” noting that a disconnection notice was issued on July 21 and received by the governor’s office on July 22. The company stated that extensive efforts to resolve the issue through consultations and reconciliations had failed, necessitating the disconnection.
The statement read;
“In a dramatic move highlighting tensions between utility providers and state governments, Kaduna Electric has disconnected electricity supply to the Kaduna State Government House and other state government accounts due to unpaid bills.
“Kaduna Electric announced the disconnection following extensive efforts to resolve the issue through consultations and reconciliations. The outstanding balance for electricity consumed from January 2024 to July 2024 amounts to N1,166,856,991.87, with a total debt, including historical arrears, reaching N2,943,060,116.77.
“Despite a payment of N256,920,963.88 made on 9 May 2024 for electricity consumed between September 2023 and December 2023, the debt remains significantly high. Kaduna Electric’s decision to disconnect power came after repeated attempts to address the payment issues, including several consultations with state officials.“In contrast, other states under the Kaduna Electric franchise, such as Sokoto, Kebbi, and Zamfara, have maintained their accounts in good standing. A disconnection notice was issued on 21 July 2024 and received by the Office of the Governor on 22 July 2024.
“The move reflects Kaduna Electric’s need to meet its financial obligations amidst broader challenges in the electricity sector. Kaduna Electric emphasised that the disconnection was a last resort after all other avenues for resolving the payment issue were exhausted. The Nigerian Electricity Regulatory Commission (NERC) previously intervened in Kaduna Electric, installing an Administrator and Special Board to oversee the company during a transitionary period prior to an official takeover by the current investors.
“The Administrator committed to an agreement with the Kaduna Inland Revenue Service to pay N20 million monthly, including statutory monthly tax payments, an agreement that has been honoured since the takeover by the current management. The situation underscores the urgent need for improved financial management and timely payments by government entities to avoid disruptions in essential services.”
