Kaduna Electric has cut off electricity supply to the Kaduna State Government House and other state government facilities due to unpaid bills totaling N2.9 billion. This move follows extensive efforts by the utility company to resolve the debt issue through consultations and reconciliations.
As of July 2024, the unpaid balance for electricity consumed from January to July 2024 stands at N1.17 billion. Combined with historical debt, the total arrears amount to nearly N2.94 billion. Despite a recent payment of N256.9 million made in May 2024 for electricity used from September to December 2023, the outstanding debt remains substantial.
Kaduna Electric issued the disconnection notice on July 21, 2024, which was received by the Office of the Governor the following day. The company stated that this action was a last resort after numerous attempts to address the payment issues failed. In contrast, other states under the Kaduna Electric franchise, such as Sokoto, Kebbi, and Zamfara, have kept their accounts in good standing.
The utility company stressed that the disconnection was necessary to meet its financial obligations and ensure operational stability. The Nigerian Electricity Regulatory Commission (NERC) had earlier installed an Administrator and Special Board to oversee Kaduna Electric during a transitionary period before the official takeover by current investors. The Administrator had committed to paying N20 million monthly, including statutory tax payments, which has been followed since the management change.
In a related development, the Kaduna State Internal Revenue Service sealed Kaduna Electric’s offices over a N600 million tax liability. Executive Chairman Jerry Adams explained that this action was based on a court order to ensure compliance with tax obligations from 2015 to 2022.
Kaduna Electric continues to focus on fulfilling its commitments to the electricity market and ensuring the stability and sustainability of its operations amidst these challenges.
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