Kaduna Disco Cuts Power To Government House

The electrical distribution business Kaduna Electric has abruptly cut off the power to the Kaduna State Government House and other government buildings due to an alleged N2.9 billion debt.

This lawsuit comes after the Kaduna Electricity Distribution Company (KAEDC) was accused of owing over N600 million in unpaid taxes by the Kaduna State Internal Revenue Service (KADIRS).

Kaduna Electric confirmed the disconnection, which happened on Friday, August 2, in a statement on X (previously Twitter). The business disclosed that the debt had accrued during a seven-month period, spanning from January to July, in addition to “historical arrears.”

Kaduna Electric stated that the decision to disconnect was made as a “last resort,” adding that the governor’s office got a disconnection letter on July 22 after it was sent on July 21. The company said that the disconnection was necessary since significant attempts to settle the matter through talks and reconciliations had failed.

The statement read; “In a dramatic move highlighting tensions between utility providers and state governments, Kaduna Electric has disconnected electricity supply to the Kaduna State Government House and other state government accounts due to unpaid bills.

“Kaduna Electric announced the disconnection following extensive efforts to resolve the issue through consultations and reconciliations. The outstanding balance for electricity consumed from January 2024 to July 2024 amounts to N1,166,856,991.87, with a total debt, including historical arrears, reaching N2,943,060,116.77.

“Despite a payment of N256,920,963.88 made on 9 May 2024 for electricity consumed between September 2023 and December 2023, the debt remains significantly high. 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, such as Sokoto, Kebbi, and Zamfara, have maintained their accounts in good standing. A disconnection notice was issued on 21 July 2024 and received by the Office of the Governor on 22 July 2024.

“The move reflects Kaduna Electric’s need to meet its financial obligations amidst broader challenges in the electricity sector. Kaduna Electric emphasised that the disconnection was a last resort after all other avenues for resolving the payment issue were exhausted. The Nigerian Electricity Regulatory Commission (NERC) previously intervened in Kaduna Electric, 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 committed to an agreement with the Kaduna Inland Revenue Service to pay N20 million monthly, including statutory monthly tax payments, an agreement that has been honoured since the takeover by the current management. The situation underscores the urgent need for improved financial management and timely payments by government entities to avoid disruptions in essential services.”

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Nnamdi Okoli