From Sola Ojo, Abuja
After months of back and forth between Kaduna Electric and the Kaduna State Government and its billable accounts, the former has finally taken a bold step by disconnecting the latter over N2.9 billion debt profile.
The humongous debt which has accumulated for seven months is said to be a part of billions of naira the distribution company owes the Electricity Transmission Company of Nigeria.
According to the Company’s Head of Corporate Communication, Abdulazeez Abdullahi, the disconnection became necessary after extensive efforts to resolve the issue through consultations and reconciliations.
He added that the outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to a staggering N1,166,856.
That he said includes the historical debt that left the State Government with a huge debt that currently stands at a total of N2,943 billion.
Despite a recent payment of N256,920,963.88 made on May 9, 2024, for electricity consumed between September 2023 and December 2023, the Kaduna State Government’s debt remains significantly high, though substantial, but it has not been enough to clear the accumulated arrears, he said.
He continued, “Kaduna Electric’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 and other repayment obligations with Kaduna Electric.
“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 financial obligations amidst the broader challenges facing the electricity sector.
“Kaduna Electric has emphasized that the disconnection was a last resort after all other avenues for resolving the payment issue had been exhausted.
“The company is now focusing on fulfilling its commitments to the electricity market and ensuring stability in its operations and sustainability as a Company.
“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, this includes statutory monthly tax payments as required, this agreement has been honored since the takeover by the current Management.
“The situation has highlighted 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”.