Kaduna Electric has disconnected electricity supply to the Kaduna State Government House and other state government facilities due to unpaid bills totaling N2.9bn.
A statement by the Head, Corporate Communication, AbdulAzeez Abdullahi, on Friday, noted that Kaduna Electric made repeated attempts to resolve the issue, including consultations with state officials, before issuing a disconnection notice on July 21.
Saturday PUNCH reports that the Kaduna State Internal Revenue Service sealed the Kaduna Electricity Distribution Company over a N600m tax liability. Jerry Adams, the Executive Chairman of KADIRS, told reporters that the exercise was carried out in compliance with a court ruling that restrained KAEDCO from being held liable for state obligations. Adams made this statement to reporters following the exercise early on Friday.
Adams clarified that the N600 million tax due covered the period from 2015 to 2022, during which time they completed all reconciliations and KAEDCO agreed to pay a sizeable portion of the obligation.
But the executive chairman bemoaned, “KAEDCO has not fulfilled what it agreed to do up until this point, since the responsibility was constituted last year.
“We carried out what the law required this morning—sealing and taking control of their property to ensure compliance.”
But according to a statement from Kaduna Electric, the outstanding balance for electricity used only between January and July of 2024 totalled an astounding N1,166,856,991.87 (one billion, one hundred and sixty-six million, eight hundred and fifty-six thousand, nine hundred and ninety-one naira, and eighty-seven kopo).
This amount, along with the debt from the past, has left the State Government with an enormous debt that, according to KAEDCO, currently totals N2,943,060,116.77, or two billion nine hundred and forty-three million sixty thousand one hundred and sixteen naira seventy-seven kobo.
It also stated that the Kaduna State Government’s debt is still very high even after a recent payment of N256,920,963.88 for power used between September 2023 and December 2023 was made on May 9, 2024.
It stated, “This payment, though significant, has not been sufficient to settle the accumulated arrears.”
The decision to cut off power was made by Kaduna Electric following multiple attempts to resolve the financial concerns, including multiple meetings with state representatives.
However, Sokoto, Kebbi, and Zamfara, three other states covered by the Kaduna Electric franchise, have kept their accounts in good standing by consistently making their required payments for electricity and other repayments to Kaduna Electric.
The statement claims that an official notice of disconnection was sent on July 21, 2024, and that the Office of the Governor received it on July 22 of the same year.
It said that the action was a reflection of the business’s need to fulfil its financial commitments in the face of more significant difficulties affecting the electrical industry.
It further stated that Kaduna Electric has stressed that the disconnection was the last option available for addressing the payment issue.
“The company’s current priorities are meeting its obligations to the electrical market, maintaining operational stability, and maintaining its viability as a business.