Kaduna Government House has been disconnected by the Kaduna Electricity Distribution Company (KEDCO) over a ₦2.9 billion debt.
The DisCo, in a statement released by the Head of Corporation Communication, Abdulazeez Abdullahi, said the government house had not paid for electricity consumed in seven months.
In the early hours of Friday, the state government through its tax agency, the Kaduna State Internal Revenue Service (KADIRS) sealed the electricity coy over ₦600 million tax liabilities.
However, Abdullahi said the disconnection took effect after extensive efforts to resolve the issue through consultations and reconciliations.
According to the statement, “In a dramatic move that underscores growing tensions between utility providers and state governments, Kaduna Electric has cut off 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. The outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to a staggering ₦1,166 billion.
“This figure, including the historical debt, has left the State Government with a huge debt that currently stands at a total of ₦2,943 billion.”
He said despite a recent payment of ₦256 million 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.
“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.
“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.”
He emphasized that the disconnection was a last resort after all other avenues for resolving the payment issue had been exhausted, noting that the company is now focusing on fulfilling its commitments to the electricity market and ensuring stability in its operations and sustainability as a company.
He disclosed that the Nigerian Electricity Regulatory Commission (NERC) had previously intervened in the Disco by installing an Administrator and Special Board to oversee the company during its transitional period prior to an official takeover by the current investors where the Administrator of Kaduna Electric had committed to an agreement with the Kaduna Inland Revenue Service to pay ₦20 million monthly including statutory monthly tax payments as required, which he said has been honored since takeover by the current Management.
He highlighted the urgent need for improved financial management and timely payments by government entities to avoid disruptions in essential services saying, “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.”