ASHENEWS reports that a game of tit-for-tat is currently underplay between the Kaduna State Government, and Kaduna Electricity Distribution Company (KAEDCO) over the sealage of its office by the Kaduna State Internal Revenue Service (KADIRS) over a N600 million tax liability.
In response, KAEDCO has disconnected the state Government House over a N1,166,856,991.87 debt.
The Executive Chairman of KADIRS, Mr Jerry Adams, on Friday, told newsmen after the sealege of KAEDCO office, following a Court order, explained that the N600 million tax liability was from 2015 to 2022, where they did all the reconciliations with KAEDCO the firm agreeing to pay a substantial amount of the liability.
According to Adams, “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, “he said.
Adams called on other businesses, individuals, corporate organisations and the public to always ensure voluntary comply in tax payments.
In a swift response, KAEDCO has disconnected the electricity supply to the Kaduna State Government House and other state government accounts due to unpaid bills.
Kaduna Electric announced the disconnection after extensive efforts to resolve the issue through consultations and reconciliations.
A statement by Kaduna Electric on Friday, said the outstanding balance for electricity consumed by the Kaduna Government House and other state government agencies from January 2024 to July 2024 alone stands at a staggering N1,166,856,991.87.
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“This figure, including the historical debt, has left the State Government with a huge debt that currently stands at a total of Two Billion, Nine Hundred and Fourty-Three Million Sixty Thousand One Hundred and Sixteen Naira Seventy-Seven Kobo (N2,943,060,116.77),” the statement reads.
According to KAEDCO, despite a recent payment of N256,920,963.88 made on May 9, 2024, for electricity consumed between September 2023 and December 2023, the Government’s debt remains significantly high.
This payment, though substantial, has not been enough to clear the accumulated arrears.
Kaduna Electric’s decision to disconnect power came after repeated attempts to address the payment issues, including several consultations with state officials.
The statement further enumciated that 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.
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 reflects the company’s need to meet its own financial obligations amidst the broader challenges facing the electricity sector.
Kaduna Electric has emphasized that the disconnection was a last resort after all other avenues for resolving the payment issue had been exhausted.
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 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 public and stakeholders await further developments on how the Kaduna State Government will address the arrears and restore power to the affected government offices.
