The Kaduna Power Supply Company (KAPSCO) has dismissed claims that the Kaduna State Government owes KAEDCO N2.9 billion, calling the allegation “baseless.”
In a statement released on Saturday, Aminu Idris, KAPSCO’s Managing Director, addressed the controversy. The dispute escalated on August 2 when KAEDCO disconnected the government house and other state facilities due to the alleged debt. This followed the Kaduna State Internal Revenue Service (KADIRS) sealing KAEDCO’s office over an unpaid tax of N600 million.
KAEDCO described the disconnection as a “last resort,” stating that the notice was issued on July 21 and received by the governor’s office the next day after attempts to resolve the issue through consultations had failed.
KAPSCO countered that KAEDCO’s actions were disappointing and needed to be addressed. According to KAPSCO, the government regularly receives and verifies electricity bills from KAEDCO and pays them through the Ministry of Finance, including those for the Kaduna State Government House.
KAPSCO refuted the N2.9 billion claim, stating that the current administration under Governor Sen. Uba Sani has engaged KAEDCO multiple times about debts inherited from the previous administration. The government has already approved payments for all debts from 2015 to March 2023.
For the period between January 2015 and March 2023, KAEDCO billed N10,264,679,233.87, but KAPSCO verified only N7,507,958,463.79. The Kaduna State Government has paid N7,315,366,478.77, and saved N2,848,672,770.08 due to overbilling and non-compliance with the Nigerian Electricity Regulatory Commission’s (NERC) capping order.
KAPSCO also noted that N256.92 million was paid on May 9 as a final settlement for all government MDAs and the Kaduna State Water Cooperation (KADSWAC) for the latter part of 2023. KAEDCO subsequently presented a bill of N372,864,104 for January to May 2024, of which N353,714,933 was verified and approved for payment. Additionally, KADSWAC was billed N696,715,71.66, a sum for which it is responsible.
KAPSCO emphasized that the Kaduna State Government holds a 2.5% share in KAEDCO and has invested in infrastructure development to support the company. It also criticized KAEDCO’s decision to disconnect Yusuf Dantsoho hospital, which contravenes NERC regulations protecting facilities with life support machines.
KAPSCO urged KAEDCO to reconcile the outstanding issues to promote a successful Nigerian Electricity Supply Industry (NESI).
