The Kaduna State Internal Revenue Service has announced that it sealed the Kaduna Electricity Company Plc (Kaduna Electric) office over unpaid taxes amounting to N600 million.
The State Internal Revenue Service disclosed this on its X page on Friday, August 2, 2024.
It revealed that the decision is in line with 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, which empowers the service to enforce tax compliance.
Sealing Approved by Court
According to Zakari Jamilu Muhammad, the service’s Head of Corporate Communications, its officials had to seal the business premises of Kaduna Electric due to significant established tax liabilities.
Furthermore, he stated that the development was based on a court order.
“The Service secured a court order for the immediate closure and taking over of the company’s property until all unpaid taxes are settled,” the statement partly read.
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Amid the development, the Kaduna Electricity Company Plc (Kaduna Electric) later announced that it had cut off electricity supply to the Kaduna State Government House and other state government offices due to unpaid bills amounting to N2.9 billion.
Kaduna Electric disclosed this in a statement on Friday, August 2, 2024, indicating that the development underscores “growing tensions” between utility providers and state governments.
What You Should Know
The development comes as Kaduna Electric seeks financial stability.
It was previously reported that the Nigerian Electricity Regulatory Commission (NERC) had approved the acquisition of a 60% equity stake in Kaduna Electricity Company Plc (Kaduna Electric) by ASI Engineering Limited.
This was disclosed by Kaduna Electric via its X page on Friday, July 13, 2024.
The equity transaction followed a NERC report from six months ago, which revealed that the electricity distribution company had a debt of N110 billion ($130 million) owed to various entities, including the Nigerian Bulk Electricity Trader and power generation firms.
As disclosed in the statement at the time, ASI’s vision is to make Kaduna Electric a national leader in electricity distribution, driving sustainable development and enhancing the quality of life through innovative and reliable solutions, thereby impacting residents, businesses, and industries in its franchise states (Kaduna, Zamfara, Sokoto, and Kebbi).
The collaboration is expected to focus on modernizing the electricity distribution network, implementing innovative solutions for energy management, and fostering greater customer satisfaction and engagement.
NERC was appreciated for facilitating the approval alongside the Bureau of Public Enterprises (BPE).
The terms of the acquisition agreement include that ASI will prioritize investments in Kaduna Disco infrastructure upgrades, employee training, and development, while embarking on community engagement initiatives to create lasting value for all stakeholders.
