Electricity Company Disconnects Govt House For Owing N2.9bn

Electricity Company Disconnects Govt House For Owing N2.9bn

For owing about N2.9bn, the Kaduna Electricity Company (KAEDCO) has cut off electricity supply to the Kaduna State Government House and other state government over unpaid electricity bills.

Abdulazeez Abdullahi, the Kaduna Electric Head, Corporation Communication, announced the disconnection after extensive efforts….to resolve the issue through consultations and reconciliations.

It should be Recalled that in the early hours of Friday, the state government through its,,,tax agency, the Kaduna State Internal Revenue Service (KADIRS) sealed the electricity company over N600 million tax liabilities.

However, Abdullahi said the disconnection took effect after extensive efforts to resolve the issue through consultations and reconciliations.

The statement read in part, “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 owing 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 N1,166 billion.

“This figure, including the historical debt, has left the State Government with a huge debt that currently stands at a total of N2,943 billion.”

The KAEDCO Spokesperson maintained that despite a recent payment of N256 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 N20 million monthly,,,,including statutory monthly tax payments as required, which he said has been honored since takeover by the current Management, highlighting 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.”

At the time.of filing this report no recent update from the state authority on the incident.