The Kaduna Electricity Distribution Company (Kaduna DisCo) has announced the disconnection of electricity supply to the State Government House due to a N2.9 billion debt.
The management of the DisCo made this disclosure in a statement on Friday on their official X account.
The power company stated that the debt has accumulated over seven months of electricity consumption without payment by the government.
“In a dramatic move that underscores growing tensions between utility providers and state governments, Kaduna Electric has cut off electricity supply to the Kaduna State Government House and other state government accounts due to unpaid bills.
“Kaduna Electric announced the disconnection after extensive efforts to resolve the issue through consultations and reconciliations.
“The outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to a staggering One Billion, One Hundred and Sixty-Six Million, Eight Hundred and Fifty-Six Thousand, Nine Hundred and Ninety-One Naira, Eighty-Seven Kobo (N1,166,856,991.87).
“This figure, including the historical debt has left the State Government with a huge debt that currently stands at a total of Two Billion Nine Hundred and Forty-Three Million Sixty Thousand One Hundred and Sixteen Naira Seventy-Seven Kobo (N2,943,060,116.77),” the DisCo said.
Repeated Unsuccessful Payment Negotiations with State Government
In addition, the management noted that despite repeated attempts by the company to secure payment of the electricity bill from the State Government, all efforts were unsuccessful.
According to the statement, the Nigerian Electricity Regulatory Commission (NERC) had previously intervened in the Disco by installing an Administrator and Special Board to oversee the Company during a transition period prior to an official takeover by the current investors.
The company also stated that a disconnection notice was formally issued on July 21, 2024, and was received by the Office of the Governor on July 22, 2024.
“Kaduna Electric’s decision to disconnect power came after repeated attempts to address the payment issues, including several consultations with state officials.
“A disconnection notice was formally issued on July 21, 2024, and was received by the Office of the Governor on July 22, 2024. The move reflects the company’s need to meet its own financial obligations amidst the broader challenges facing the electricity sector.
“Kaduna Electric has emphasized that the disconnection was a last resort after all other avenues for resolving the payment issue had been exhausted,” the statement added.
What you should know
The Nigerian electricity sector has grappled with the misleading perception of a brighter power industry following the 2013 privatization exercise.
According to a recent report, the sector is currently struggling with an inherited debt crisis of over N3 trillion.
Meanwhile, Nairametrics reported that the Federal Government budgeted N40 billion to settle the electricity bill debts of ministries, departments, and agencies (MDAs) in 2024.
The Item, listed as ‘Settlement of MDAs’ electricity debts,’ was in the sectoral allocation details released by the Chairman of the Senate Committee on Appropriations, Solomon Adeola.
The amount Is the same as what was budgeted for 2023 but higher than the N27 billion budgeted in 2022.
In May, the Federal Government also announced that it had paid N130 billion to settle part of the N1.3 trillion gas supply debts in the Nigerian Electricity Supply Industry (NESI).
This was disclosed by the Minister of Power, Mr. Adebayo Adelabu, during his address at the 2024 Eighth Africa Energy Marketplace held in Abuja.
According to the Minister, the payment is contingent on the reconciliation of outstanding debts between the government and the power generating companies.
