The Kaduna State government has sealed off the office of Kaduna Electric after the electricity company disconnected power supply to government offices over N2.9bn debt.
The electric company had also disconnected electricity supply to other state government facilities.
But in a move that amounted to tit for tat, the Kaduna State Internal Revenue Service also sealed the Kaduna Electricity Distribution Company over a N600m tax liability.
Speaking to newsmen after the exercise in the early hours of Friday, the Executive Chairman of KADIRS, Jerry Adams, said the operation was an execution of a court order to restrain KAEDCO over the liability due to the state.
Adams explained that the N600m tax liability was from 2015 to 2022, when they did all the reconciliations with KAEDCO agreeing to pay a substantial amount of the liability.
The executive chairman, however, lamented, “Till this moment, since last year that the liability was established, KAEDCO has not met what it committed to do.
“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, 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.
The Kaduna Electric’s statement said the outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to a staggering N1.1bn.
This figure, including the historical debt has left the State Government with a huge debt that currently stands at a total of N2.9bn, according to KAEDCO.
It noted further that despite a recent payment of N256m 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, the electricity company said.
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.
Kaduna Electric emphasised that the disconnection was a last resort after all other avenues to resolve the payment issue had been exhausted, it added.
“The company is now focusing on fulfilling its commitments to the electricity market and ensuring stability in its operations and sustainability as a Company.
“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 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 public and stakeholders await further developments on how the Kaduna State Government will address the arrears and restore power to the affected government offices,” the statement added.