The Kaduna Electricity Distribution Company (KAEDCO) has cut off electricity supply to the Kaduna State Government House and other state government agencies due to a staggering debt of over N2.9 billion.
News About Nigeria gathered that KAEDCO, also known as Kaduna Electric, had made extensive efforts to resolve the issue through consultations and reconciliations before taking this drastic measure.
The outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to over N1.1 billion, with the total debt standing at N2.9 billion.
Despite a recent payment of N256.9 million made on May 9, 2024, for electricity consumed between September 2023 and December 2023, the Kaduna State Government’s debt remains significantly high.
This payment, though substantial, has not been enough to clear the accumulated arrears.
According to Abdulazeez Abdullahi, Head of Corporate Communication at KAEDCO, the company’s decision to disconnect power came 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.
A disconnection notice was formally issued on July 21, 2024, and was received by the Office of the Governor on July 22, 2024.
The move reflects the company’s need to meet its own financial obligations amidst the broader challenges facing the electricity sector.
Kaduna Electric emphasised that the disconnection was a last resort after all other avenues for resolving the payment issue had been exhausted.
The company is now focussing on fulfilling its commitments to the electricity market and ensuring stability in its operations and sustainability.
The Nigerian Electricity Regulatory Commission (NERC) had previously intervened in the DisCo by installing an administrator and special board to oversee the company during a transitionary period before an official takeover by the current investors.
The Administrator of Kaduna Electric had committed to an agreement with the Kaduna Inland Revenue Service to pay N20 million monthly, which includes statutory monthly tax payments as required.
