In a move to highlight the financial strains between utility companies and state governments, Kaduna Electric has disconnected the power supply to the Kaduna State Government House due to an outstanding debt of N2.9 billion. This decision follows months of unpaid electricity bills, specifically for the period from January to July 2024, which alone accounts for N1.16 billion of the total debt.
Abdulazeez Abdullahi, the Head of Corporate Communication at Kaduna Electric, stated that the disconnection was not taken lightly. The company had made numerous attempts to resolve the payment issues through discussions and reconciliations with state officials but ultimately found no resolution. The formal disconnection notice was issued on July 21, 2024, and acknowledged by the Governor’s office the following day.
Despite a recent payment of N256 million made on May 9, 2024, for electricity consumed between September and December 2023, the state’s debt remains significantly high. Abdullahi emphasized that this payment, while substantial, did not sufficiently address the accumulated arrears.
The situation is further complicated by the fact that other states under the Kaduna Electric franchise—namely Sokoto, Kebbi, and Zamfara—have managed to maintain their accounts in good standing, regularly fulfilling their electricity payment obligations. This contrast raises questions about the financial management practices within the Kaduna State government.
Kaduna Electric’s decision to disconnect power reflects the company’s urgent need to meet its own financial obligations amid broader challenges in the electricity sector. The company has highlighted that the disconnection was a last resort after exhausting all other avenues for resolving the payment issue.
The Nigerian Electricity Regulatory Commission (NERC) had previously intervened in the operations of Kaduna Electric by installing an Administrator and Special Board to oversee the company during a transitional period.
This oversight was aimed at stabilizing the company’s operations and ensuring compliance with financial agreements, including a commitment to pay N20 million monthly to the Kaduna Inland Revenue Service.
This incident underscores the critical need for improved financial management and timely payments by government entities to prevent disruptions in essential services. As stakeholders await further developments, the focus remains on how the Kaduna State Government will address its substantial arrears and restore power to affected government offices.
The disconnection of power to the Government House serves as a stark reminder of the financial realities facing many public entities in Nigeria. It highlights the importance of accountability and the need for government agencies to prioritize their financial commitments to ensure uninterrupted service delivery.
