KEDCO cut off electricity supply to Kaduna Govt House into over N2.9bn debt

Kaduna Electricity Distribution Company (KEDCO) has cut off power to the Kaduna State Government House due to an outstanding electricity debt of N2.9 billion.

In a statement from the Head of Corporate Communication, Abdulazeez Abdullahi, it was revealed that the government house had not paid for electricity usage over the past seven months.

This action follows a recent move by the Kaduna State Internal Revenue Service (KADIRS), which sealed KEDCO’s offices over N600 million in unpaid taxes.

Abdullahi noted that the decision to disconnect the government house came after numerous attempts to resolve the matter through consultations and reconciliations.

“In a significant move reflecting escalating tensions between utility providers and state governments, Kaduna Electric has halted electricity supply to the Kaduna State Government House and other state government accounts due to unpaid bills,” the statement read.

The debt for electricity consumed from January 2024 to July 2024 stands at N1.166 billion, contributing to the total outstanding debt of N2.943 billion.

Despite a recent payment of N256 million made in May 2024 for electricity consumed between September 2023 and December 2023, the Kaduna State Government’s debt remains substantial. Abdullahi emphasized that this payment was insufficient to cover the accrued arrears.

“Kaduna Electric’s decision came after repeated efforts to address the payment issues, including several consultations with state officials,” Abdullahi stated. He also pointed out that other states under Kaduna Electric’s franchise, such as Sokoto, Kebbi, and Zamfara, have maintained good standing with their electricity payments.

A formal disconnection notice was issued on July 21, 2024, and received by the Office of the Governor the following day. Abdullahi highlighted that this measure was necessary for the company to meet its financial obligations amid the broader challenges in the electricity sector.

The disconnection was described as a last resort after exhausting all other avenues for resolving the payment issues. Abdullahi emphasized the company’s focus on fulfilling its commitments to the electricity market and ensuring operational stability.

He also mentioned that the Nigerian Electricity Regulatory Commission (NERC) had previously intervened in KEDCO, installing an Administrator and Special Board to oversee the company during a transitional period before the current investors took over. Under the new management, an agreement was reached with the Kaduna Inland Revenue Service to pay N20 million monthly, including statutory monthly tax payments, which has been honored since the takeover.

Abdullahi underscored the urgent need for improved financial management and timely payments by government entities to avoid disruptions in essential services. The public and stakeholders now await further developments on how the Kaduna State Government will address the arrears and restore power to the affected government offices.