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    Electricity Company Disconnects Kaduna Government House Over N2.9 Billion Debts

    Platform Times NewspaperBy Platform Times NewspaperAugust 2, 2024 Business No Comments2 Mins Read
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    The Kaduna Electricity Distribution Company (KEDCO) has disconnected the power supply to the Kaduna Government House due to outstanding debts amounting to N2.9 billion. 

    This action underscores the escalating financial crisis within the state and the broader implications for governance and public services.

    Abdulazeez Abdullahi, Head of Corporate Communication at KEDCO, disclosed that the government house had not settled its electricity bills for seven months, leading to the disconnection. 

    He emphasized that the disconnection was not a hasty decision but followed extensive consultations and reconciliations with state officials.

    “The outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to N1.166 billion, contributing to a total debt of N2.943 billion,” Abdullahi stated. 

    Despite a payment of N256 million made on May 9, 2024, for electricity consumed between September 2023 and December 2023, the debt remains significant.

     

    A formal disconnection notice was issued on July 21, 2024, and received by the Office of the Governor on July 22, 2024.

     Abdullahi stressed that the decision to cut off the power supply was a last resort after all other avenues for resolving the payment issue had been exhausted.

    The Kaduna State Internal Revenue Service (KADIRS) had recently sealed KEDCO over N600 million in tax liabilities, adding to the financial pressures on the utility company. Despite these challenges, KEDCO’s decision to disconnect the government house’s power supply highlights the need for improved financial management and timely payments by government entities.

    Other states under the Kaduna Electric franchise, including Sokoto, Kebbi, and Zamfara, have maintained their accounts in good standing, according to Abdullahi

    . This contrast underscores the financial mismanagement specific to Kaduna State, raising concerns about the broader fiscal health of the state’s administration.

    The Nigerian Electricity Regulatory Commission (NERC) had previously intervened by installing an Administrator and Special Board to oversee Kaduna Electric during its transitional period.

     The Administrator committed to paying KADIRS N20 million monthly, a commitment honored by the current management.

    As KEDCO focuses on meeting its financial obligations and ensuring operational stability, the public and stakeholders await further developments on how the Kaduna State Government will address the outstanding debts and restore essential services. 

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