KAEDCO Disconnects Kaduna Gov’t House Over N2.9bn Debt

In a dramatic move that underscores growing tensions between utility providers and state governments over fulfilment of obligations, the Kaduna Electricity Distribution Company (KAEDCO) has cut off electricity supply to the Kaduna State Government House and other state government agencies due to unpaid bills.

KAEDCO, also known as 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 One Billion, One Hundred and Sixty-Six Million, Eight Hundred and Fifty-Six Thousand, Nine Hundred and Ninety-One Naira, Eighty-Seven Kobo (N1,166,856,991.87). 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 Forty-Three Million Sixty Thousand One Hundred and Sixteen Naira Seventy-Seven Kobo (N2,943,060,116.77).

“Despite a recent payment of N256,920,963.88 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,” the DisCo stated.

According to a statement issued by the Head, Corporate Communication, KAEDCO, Abdulazeez Abdullahi, “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.”

Kaduna Electric also emphasised that the disconnection was a last resort after all other avenues for resolving the payment issue had been exhausted. The company added that it was 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 honored since 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.

Recall that the Kaduna Internal Revenue Service (KADIRS) had earlier sealed the headquarters of the Kaduna Electric over unpaid tax amounting to N600,358,815.33.