Kaduna Electric, an electricity distribution company (KAEDC), has refuted claims by the Kaduna State Internal Revenue Service (KADIRS) that it owes N600 million in unpaid taxes. On August 2, KADIRS sealed the company’s headquarters after obtaining a court order, citing the tax debt.
The move came hours after Kaduna Electric disconnected power supply to the government house and other state facilities over a N2.9 billion debt. In response, Kaduna Electric accused the state government of resorting to “cheap blackmail” following its failure to pay the debt for the past six months.
Zakari Muhammad, head of corporate communications at KADIRS, announced the sealing of the DisCo’s headquarters. However, Kaduna Electric, in a statement issued on Saturday, clarified that it owes less than N400 million, not N600 million, and has been adhering to an agreement to pay N20 million monthly since January 2024.
“In a surprising turn of events, Kaduna Electric has found its headquarters in the state capital shut down by the Kaduna Internal Revenue Service,” the statement reads. “Kaduna IRS claims this action is due to the company’s outstanding tax liabilities. Kaduna Electric is surprised by this development. The Company had demanded payment from the state government, which it failed to honor for the last six months, resulting in cheap blackmail, which is uncalled for and unnecessary.”
The company emphasized that it has not received any payment from the Kaduna State Government for electricity consumed since January 2024, leading to a debt of N1.16 billion, with a total outstanding amount of N2.9 billion. The DisCo insists it owes less than N400 million and has honored its monthly payment agreement.
Since the new management took over in January, Kaduna Electric claims to have been up to date with all tax-related payments, including statutory monthly tax payments and settlement arrangements with the Kaduna Inland Revenue Service. Despite these efforts, the government has locked down the headquarters, including the crucial command and control center, impacting the company’s operations.
The company has activated its disaster recovery plan to continue operations, though it noted that this contingency measure limits its visibility and control over its network, raising concerns about supply safety. Kaduna Electric assured the public of its commitment to maintaining electricity supply, especially during this time of national distress.
Raising legal concerns about the shutdown, Kaduna Electric stated that the court order obtained by KADIRS to seal its headquarters lacks jurisdiction. “Matters of tax are to be heard by the Tax Appeal Tribunal, a specialized court. Moreover, it is illegal to distrain property for personal income tax,” the statement added, although the company pledged to obey the order.
The ongoing issue of non-payment for electricity by the Kaduna State Government affects the entire electricity value chain, from generation companies to gas producers and the Transmission Company of Nigeria (TCN), all vital for ensuring a stable power supply.
KAEDC urged customers to support the company by purchasing prepaid meter tokens through its online and mobile platforms, especially those unable to reach the cash office at its headquarters. The company expressed hope that with public support and prompt payment for electricity usage, it can overcome this challenging period and continue delivering essential services to the public.