KEDCO Disconnects Kaduna Government House Over N2.9bn Electricity Bill 

John Shiklam in Kaduna

The Kaduna Electricity Distribution Company (KEDCO) has disconnected Government House,  Kaduna, for non-payment of over N2.9 billion electricity debt.
The disconnection took place yesterday, hours after the Kaduna State Internal Revenue Service (KADIRS) sealed the head offices of the electricity company along Ahmadu Bello Way Kaduna for not paying over N600 million tax liabilities.
KEDCO, in a statement by its Head, Corporation Communication, Abdulazeez Abdullahi, said  the Government House had not paid for electricity bill for seven months.

He said the disconnection took effect after extensive efforts to resolve the issue through consultations and reconciliations.
The statement added “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 due 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 statement 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 debt remained significantly high.

“This payment, though substantial, has not been enough to clear the accumulated arrears”, the statement added.
Abdullahi said the decision by KEDCO to disconnect the Government House was taken 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”, the company said.

According to the statement, a disconnection notice was formally issued on July 21, 2024, and was received by the Office of the Governor on July 22, 2024.
It added that the move reflected the company’s need to meet its own financial obligations amidst the broader challenges facing the electricity sector.
Abdullahi said 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 said  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 honoured since takeover by the current management.