Kaduna Electric Distribution Company (KAEDCO), on Saturday, termed untrue, the claim that it owes N600 million in unpaid taxes by the State’s Internal Revenue Service.
The Kaduna Internal Revenue Service (KADIRS) had, on August 2, sealed the distribution company’s (DisCo) headquarters over unpaid tax.
Zakari Muhammad, KADIRS Head of Corporate Communications, said the company was sealed after it obtained a court order.
Speaking on the tax debt in a statement, Kaduna Electric accused the state government of resorting to “cheap blackmail” after failing to pay the debt.
The DisCo also said it owes less than N400 million (instead of N600m) and has been adhering to an agreement to pay N20 million monthly since January 2024.
Abdulazeez Abdullahi, KAEDCO’s Head of Communications said: “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 black-mail, 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.
READ ALSO: Kaduna Seals DisCo Over N600m Tax Debt
“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 arrangements with the Kaduna Inland Revenue Service.
“Despite these efforts, the government has taken the drastic step of locking down the head-quarters, 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.”
The DisCo said it has activated its disaster recovery plan to continue operations, but noted that the contingency measure limits its visibility and control over its network — raising concerns about supply safety.
The company assured the public that it is making efforts to maintain electricity supply, “especially during this time of national distress.”
“We are committed to ensuring that our customers receive uninterrupted power despite these hurdles.”
Reacting to the legality of the shutdown, the DisCo said the court order obtained by the KADIRS to seal its headquarters lacks jurisdiction.
“Matters of tax are to be heard by the Tax Appeal Tribunal, a specialised 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,” the statement furthered.
