Kaduna Electric (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 distribution company’s headquarters, citing the tax debt, following a court order.
Zakari Muhammad, head of corporate communications at KADIRS, stated that the closure came shortly after the DisCo disconnected power to the government house and other state facilities over a N2.9 billion debt.
In a statement released on Saturday, Kaduna Electric accused the state government of “cheap blackmail” for failing to pay its debt. The company clarified that it owes less than N400 million and has been adhering to an agreement to pay N20 million monthly since January 2024.
“Kaduna Electric was surprised by the sudden closure of its headquarters by KADIRS over alleged tax liabilities,” the statement read. “Despite the state government’s failure to honor payments for the last six months, resulting in a N1.16 billion debt, the claim of a N600 million tax liability is untrue.”
The company emphasized that it has been current with its tax payments since the new management took over in January, including statutory monthly payments and settlement arrangements with KADIRS. Despite these efforts, the government proceeded to shut down its headquarters, impacting its operational control and dispatch center.
Kaduna Electric assured the public that it has activated a disaster recovery plan to maintain operations but noted that this measure limits its visibility and control over its network. Abdulazeez Abdullahi, KAEDC’s head of communications, affirmed the company’s commitment to providing uninterrupted power during this challenging period.
The DisCo also questioned the legal validity of the court order used to seal its headquarters, arguing that tax matters should be handled by the Tax Appeal Tribunal. Despite these concerns, the company stated it would comply with the order.
KAEDC urged customers to continue supporting the company by purchasing prepaid meter tokens online or via mobile platforms, especially since access to the cash office at its headquarters is restricted. The company expressed hope that public support and prompt payment for electricity usage would help it navigate this challenging period and continue delivering essential services.
