Kaduna State Government and Kaduna Electric Engage in Tit-for-Tat Dispute
Kaduna State Government and Kaduna Electric Engage in Tit-for-Tat Dispute:A high-stakes dispute between the Kaduna State government and Kaduna Electric has escalated,
with both parties taking drastic measures against each other. The conflict
began when Kaduna Electric disconnected power supply to government
offices due to an outstanding debt of N2.9 billion. In response, the Kaduna
State Internal Revenue Service sealed off the Kaduna Electricity Distribution
Company’s office over a N600 million tax liability.
the chairman
According to Jerry Adams, Executive Chairman of KADIRS, the sealing of the
office was a court-ordered measure to ensure compliance with the tax liability,
which has been outstanding since 2015. However, Kaduna Electric claims
to have made repeated attempts to resolve the issue amicably before
disconnecting power supply.
The electricity company states that the Kaduna State Government’s debt
has been accumulating since January 2024, with a staggering N1.1 billion
owed in just six months. Despite a recent payment of N256 million, the debt remains significantly high. In contrast, other states under the Kaduna Electric franchise have maintained their accounts in good standing, meeting their electricity payment obligations regularly.
Kaduna Electric emphasizes that the disconnection was a last resort, taken after exhausting all other avenues to resolve the payment issue. The company is now focusing on fulfilling its commitments to the electricity market and ensuring stability in its operations.
The NERC
The Nigerian Electricity Regulatory Commission (NERC) has previously intervened in the dispute, installing an Administrator and Special Board to oversee Kaduna Electric during a transitionary period. The current management has honored an agreement to pay N20 million monthly in statutory tax payments.
The situation highlights 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.