Kaduna Electric is pointing fingers at the Kaduna State Government over an huge N2.9 billion debt. According to AbdulAzeez Abdullahi, Head of Corporate Communication at Kaduna Electric, the company has tried everything short of a magic spell to resolve the issue, including several chats with state officials before dropping the disconnection notice on July 21.
Why It Matters
Meanwhile, reports that the Kaduna State Internal Revenue Service (KADIRS) sealed the Kaduna Electricity Distribution Company (KAEDCO) over a N600 million tax liability. Executive Chairman of KADIRS, Jerry Adams, executed a court order to restrain KAEDCO due to this liability.
Adams claimed the N600 million tax debt dated from 2015 to 2022 and despite reconciling accounts, KAEDCO hasn’t paid up. “Since last year, KAEDCO has failed to meet their commitments,” Adams lamented, justifying the legal move to seal their premises.
On the flip side, Kaduna Electric’s statement highlights a debt of N1.17 billion for electricity consumed from January to July 2024 alone. Adding historical debt, the State Government owes N2.94 billion. Even a recent payment of N256.9 million in May 2024 barely scratched the surface of the massive arrears.
What They Are saying
After exhausting all other options, Kaduna Electric issued a formal disconnection notice received by the Governor’s Office on July 22. In stark contrast, states like Sokoto, Kebbi, and Zamfara under the same Kaduna Electric franchise have kept their accounts in good standing, proving it’s possible to pay your bills on time.
“The Nigerian Electricity Regulatory Commission (NERC) had previously intervened in the Disco by 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 of Kaduna Electric had committed to an agreement with the Kaduna Inland Revenue Service to pay N20 million monthly, this includes statutory monthly tax payments as required, this agreement has been honoured since the takeover by the current Management.
“The situation has highlighted the urgent need for improved financial management and timely payments by government entities to avoid disruptions in essential services.
The Nigerian Electricity Regulatory Commission (NERC) had previously stepped in, installing an Administrator and Special Board to oversee Kaduna Electric during a transitional period. Despite an agreement to pay N20 million monthly, including statutory tax payments, the debt continues to balloon.
Bottom Line
The ongoing fiasco underscores a critical need for improved financial management and timely payments by government entities. As it stands, the public and stakeholders are left watching to see how the Kaduna State Government will handle these arrears and restore power to affected government offices.
