The Kaduna State Internal Revenue Service (KADIRS) in Nigeria has sealed the premises of the Kaduna Electricity Distribution Company (KAEDCO) due to an outstanding tax liability of N600 million.
Speaking to the press on Friday morning, KADIRS Executive Chairman Mr. Jerry Adams stated that the operation followed a court order restraining KAEDCO over its tax debt to the state.
Adams clarified that the tax liability, which spans from 2015 to 2022, was established after thorough reconciliations with KAEDCO. The company had agreed to pay a significant portion of the debt.
“Since last year, despite their commitment, KAEDCO has failed to meet its obligations,” Adams lamented. “We are authorized by law to seal and take over their premises to ensure compliance, which we have executed this morning.”
Shortly after the decision by the agency, KAEDCO disconnected the electricity supply to the Kaduna State Government House and other state government offices due to unpaid bills. The company announced this move following extensive but unsuccessful attempts to resolve the issue through consultations and reconciliations.
The situation highlights escalating tensions between utility providers and state governments. KAEDCO’s statement on Friday revealed that the outstanding balance for electricity consumed by the Kaduna State Government House and other state agencies from January to July 2024 alone amounts to N1.1 billion.
