Kaduna Govt House is thrown into darkness over an N2.9bn electricity debt. Discover the details and implications of this power cut.
Due to an unpaid electricity debt of N2.9 billion, the Kaduna Electricity Distribution Company (KEDCO) has disconnected power supply to the Kaduna State Government House.
According to Abdulazeez Abdullahi, the Head of Corporate Communication, the government house has neglected payment for electricity consumption in the last seven months.
KEDCO’s offices were recently sealed by the Kaduna State Internal Revenue Service (KADIRS) due to N600 million in unpaid taxes, prompting this action.
After many attempts at resolving the issue through consultations and reconciliations, Abdullahi observed that disconnecting the government house was deemed necessary.
The statement indicated that Kaduna Electric has stopped providing electricity to the Kaduna State Government House and other government accounts due to unpaid bills, which demonstrates an increase in tensions between utility providers and state governments.
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From January 2024 to July 2024, the accumulated debt for electricity consumption amounts to N1.166 billion, adding up to a total unpaid amount of N2.943 billion.
Although a payment of N256 million was made in May 2024 for the electricity that had been consumed from September 2023 to December 2023, the Kaduna State Government still has significant outstanding debt. Abdullahi stressed that this amount paid is inadequate to settle all accumulated arrears.
Abdullahi revealed that Kaduna Electric reached this decision only after multiple attempts to resolve the payment problems, which involved numerous discussions with state authorities. He noted that other areas within Kaduna Electric’s jurisdiction, such as Sokoto, Kebbi and Zamfara have been consistent in their payments for electricity.
On July 21, 2024, a formal notice of disconnection was issued and received by the Office of the Governor on the subsequent day. Abdullahi emphasized that taking this action was imperative for the company to fulfill its monetary responsibilities in light of larger obstacles present within the electricity industry.
Abdullahi stressed the company’s dedication to meeting its obligations in the electricity market and maintaining operational stability, stating that disconnecting was only considered as a final option after all other solutions for addressing payment problems had been exhausted.
He added that KEDCO received intervention from the Nigerian Electricity Regulatory Commission (NERC) in the past. The installation of an Administrator and Special Board to oversee a transitional phase preceded the current investors’ takeover.
Following this change, a deal was made between Kaduna Inland Revenue Service and the new management for monthly payments totaling N20 million, which includes all statutory tax dues- something they’ve continued upholding ever since acquisition.
Abdullahi emphasized the critical necessity of enhancing financial control and prompt payments by government bodies to prevent any interruption in vital services.
The populace, as well as stakeholders, are currently anticipating additional progress regarding Kaduna State Government’s strategy for settling its debts and reinstating electricity supply to the impacted governmental institutions.
