The Kaduna Electricity Distribution Company (KEDCO) has disconnected power to the Kaduna Government House due to a staggering debt of N2.9 billion.
In a statement signed by the Head of Corporate Communication, Abdulazeez Abdullahi, KEDCO disclosed that the government house had not paid for electricity consumed over the past seven months.
Earlier, on Friday morning, the state government, through its tax agency, the Kaduna State Internal Revenue Service (KADIRS), sealed the electricity company due to N600 million in tax liabilities.
Abdullahi said the disconnection was implemented only after extensive efforts to resolve the issue through consultations and negotiations.
The statement read, “In a dramatic move that underscores the escalating tensions between utility providers and state governments, Kaduna Electric has cut off electricity supply to the Kaduna State Government House and other state accounts due to unpaid bills.
“Kaduna Electric announced the disconnection following persistent attempts to resolve the payment issues through consultations with state officials. The outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to a staggering N1.166 billion. Including historical debt, the total outstanding amount now stands at N2.943 billion.”
He noted 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 overall debt remains alarmingly high. “This payment, while substantial, has not been enough to clear the accumulated arrears,” he said.
“Kaduna Electric’s decision to disconnect power came as a last resort after repeated attempts to address the payment issues. In contrast, other states under the Kaduna Electric franchise—namely Sokoto, Kebbi, and Zamfara—have managed to keep their accounts in good standing by regularly meeting their electricity payment obligations.”
A formal disconnection notice was issued on July 21, 2024, and received by the Office of the Governor on July 22, 2024. This measure reflects the company’s urgent need to meet its financial obligations amid broader challenges faced by the electricity sector.
Abdullahi emphasized that the disconnection was a final option after all other avenues for resolving the payment issues had been exhausted. He mentioned that the company is now focused on fulfilling its commitments to the electricity market and ensuring operational stability and sustainability.
He also revealed that the Nigerian Electricity Regulatory Commission (NERC) had previously intervened in the Disco by appointing an Administrator and Special Board to oversee the company during its transitional phase before the current investors took over. The Administrator of Kaduna Electric had committed to paying N20 million monthly, including statutory tax payments, which has been honored since the current management took over.
He underscored the urgent need for improved financial management and prompt payments by government entities to avoid disruptions in essential services, stating, “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.”
