Kaduna Govt House Disconnected By KAEDCO Over ₦2.9 Billion Debt

Kaduna Electric disconnects power to state government facilities over ₦2.9 billion in unpaid bills, while KADIRS seals KAEDCO for ₦600 million tax liability.

EKO HOT BLOG reports that Kaduna Electric has disconnected electricity supply to the Kaduna State Government House and other state government facilities due to unpaid bills totaling ₦2.9 billion.

In a statement on Friday, AbdulAzeez Abdullahi, the Head of Corporate Communication, noted that Kaduna Electric made repeated attempts to resolve the issue, including consultations with state officials, before issuing a disconnection notice on July 21.

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In a related development, the Kaduna State Internal Revenue Service (KADIRS) sealed the Kaduna Electricity Distribution Company (KAEDCO) over a ₦600 million tax liability.

Speaking to newsmen on Friday, KADIRS Executive Chairman Jerry Adams stated that the operation was an execution of a court order to restrain KAEDCO over the outstanding tax liability. Adams explained that the ₦600 million tax liability, spanning from 2015 to 2022, was established after reconciliations with KAEDCO, which had agreed to pay a substantial amount of the liability.

However, Adams lamented that since last year, KAEDCO has not fulfilled its commitment to pay the liability.

“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, the Kaduna Electric’s statement added that 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, Eighty-Seven Kobo (N1,166,856,991.87).

This figure, including the historical debt has left the State Government with a huge debt that currently stands at a total of Two Billion Nine Hundred and Forty -three, Million Sixty Thousand One Hundred and Sixteen Naira Seventy-Seven Kobo (N2,943,060,116.77), according to KAEDCO.

It noted further that despite a recent payment of N256,920,963.88 made on May 9, 2024, for electricity consumed between September 2023 and December 2023, the Kaduna State Government’s debt remains significantly high.

“This payment, though substantial, has not been enough to clear the accumulated arrears,” it said.

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, namely Sokoto, Kebbi, and Zamfara, have maintained their accounts in good standing, regularly meeting their electricity payment obligations and other repayment obligations with Kaduna Electric.

According to the statement, a disconnection notice was formally issued on July 21, 2024, and was received by the Office of the Governor on July 22, 2024.

The move, it said, reflected the company’s need to meet its own financial obligations amidst the broader challenges facing the electricity sector.