Kaduna Electric Cuts Power to Govt. House For N2.9bn Debt, After Govt. Agency Closed Its Office Over Tax 

Kaduna Electricity has cut power supply to the Kaduna State Government House and other state facilities due to unpaid bills totalling N2.9 billion. The company said it made multiple attempts to resolve the issue, including consultations with state officials.

According to a statement by the Head of Corporate Communication, AbdulAzeez Abdullahi, a disconnection notice was formally issued on July 21, 2024, and received by the governor’s office on July 22, 2024. The electricity supply was then cut off on Friday.

The development notably followed the sealing of the energy company by the Kaduna State Internal Revenue Service (KADIRS) over a separate tax liability of N600 million. The sealing was executed in the early hours of Friday after KADIRS obtained a court order that cited sections of the Personal Income Tax Act and the Kaduna State Tax Codification Law. Jerry Adams, the executive chairman of KADIRS, stated that the tax liability has been outstanding since 2015.

“The Kaduna State Internal Revenue Service in exercise of its vested powers pursuant to Section 104 (1) & (4) of Personal Income Tax Act, 2011 and Section 37 (3) & (4) of the Kaduna State Tax Codification and Consolidation Law, 2020, has sealed up the business premises of Kaduna Electric due to huge established tax liabilities. The Service secured a court order for the immediate closure and taking over of the Company’s property until all unpaid taxes are settled”, the statement said.

Later that Friday, Kaduna Electric reported that the outstanding balance for electricity consumed from January to July 2024 alone is over N1.16 billion. This, combined with historical debts, brings the total amount owed by the state government to nearly N2.94 billion.

Despite a recent payment of N256.9 million for past electricity consumption, the accumulated debt remains significantly high. The disconnection was described as a last resort after exhausting all other options for resolution. Kaduna Electric added that other states it serves, such as Sokoto, Kebbi, and Zamfara, have managed to keep their accounts in good standing by meeting their payment obligations.

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