KADUNA ELECTRIC REACTS TO HEADQUARTERS SHUTDOWN BY KADUNA STATE GOVERNMENT
In a surprising turn of events, Kaduna Electric has found its headquarters in the state capital shut down by the Kaduna Internal Revenue Service. 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 for payment of which the state government failed to honor for the last 6 months thus resulting to cheap blackmail, which is uncalled for and unnecessary. We stand by the fact that they have not paid a dime to Kaduna Electric for electricity consumed since January 2024 resulting in debt of N1.16billion, with a total outstanding of N2.9bil. The claim of liability of N600mil by Kaduna Electric is untrue, the Company owe less than N400mil with an agreement to pay N20mil monthly, these payments have been honoured by the Utility since January 2024.
Since coming onboard of the new Management back in January, demonstrating its commitment to resolving all tax-related matters responsibly is up to date with payments including statutory monthly tax payments as well as settlement arrangement with the Kaduna Inland Revenue Service. Despite these efforts, the government has taken the drastic step of locking down the headquarters, including the crucial command and control centre, which is integral to the company’s operations.
The closure has had a significant impact on Kaduna Electric’s ability to maintain full operational control. The dispatch centre, essential for coordinating power supply, is now under lock and key. In response, the company has activated its disaster recovery plan to continue operations. However, this contingency measure limits the company’s visibility and control over its network, raising concerns about supply safety.
Amidst these challenges, Kaduna Electric is determined to keep the lights on. The company reassures the public that it is doing everything within its capacity to maintain electricity supply, especially during this period of national distress. “We are committed to ensuring that our customers receive uninterrupted power despite these hurdles,” the Head of Communications, Abdulazeez Abdullahi stated.
The company also highlighted legal concerns regarding the shutdown. The Kaduna Internal Revenue Service secured a court order to close the headquarters, a court order which Kaduna Electric contends because the court 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, a point underscored by the company’s legal team. Northwistanding, the Company shall be in obeyance of this order. The ongoing issue of non-payment for electricity by the Kaduna State Government significantly affects the entire electricity value chain, from generation companies to gas producers and the Transmission Company of Nigeria (TCN), which are all vital for ensuring a stable power supply.
“We urge our customers to continue supporting us by purchasing prepaid meter tokens from our online and mobile platforms, especially those who are unable to access our headquarters’ cash office in Kaduna,” the company stated. Kaduna Electric’s management is hopeful that through public support and adherence to paying for electricity consumed, they can navigate this challenging period and continue providing essential services to the public.
It is that simple.
