After electricity disconnection, Kaduna seals DisCo over ‘N600m unpaid taxes’

The Kaduna State Internal Revenue Service (KADIRS) says it has sealed the Kaduna Electricity Distribution Company (KAEDC) over a ‘N600 million unpaid tax’.

Zakari Muhammad, head of corporate communications at KADIRS, in a statement on Friday, said the company was sealed after it obtained a court order.

Muhammad also said the decision is in line with sections 104 (1) & (4) of the Personal Income Tax Act, 2011 and sections 37 (3) & (4) of the Kaduna state tax codification and consolidation Law, 2020.

“The Kaduna State Internal Revenue Service in exercise of its vested powers pursuant to Section 104 (1) & (4) of Personal Income Tax Act, 2011 and Section 37 (3) & (4) of the Kaduna State Tax Codification and Consolidation Law, 2020, has sealed up the business premises of Kaduna Electric due to huge established tax liabilities,” the statement reads.

“The Service secured a court order for the immediate closure and taking over of the Company’s property until all unpaid taxes are settled.”
Earlier today, the electricity distribution company disconnected the power supply to the government house and other government facilities in the state over a “N2.9 billion debt”.

The DisCo said the debt had accumulated over seven months, from January to July, along with “historical arrears”.
The electricity company described the move as a “last resort,” adding that the disconnection notice was issued on July 21 and received by the governor’s office on July 22.

On January 9, the Nigerian Electricity Regulatory Commission (NERC) dissolved the board of directors of KAEDC.

The dissolution followed the DisCo’s inability to pay the N110 billion debt owed to the Nigerian Electricity Supply Industry (NESI), according to a recent order jointly signed by Sanusi Garba, NERC’s chairman, and Musiliu Oseni, his vice.