Kaduna Electric has vehemently refuted claims that it owes N600 million in unpaid taxes, alleging that the Kaduna State Government is using “cheap blackmail” to deflect scrutiny away from its debts.
This response follows the company’s headquarters being sealed by the Kaduna State Internal Revenue Service over significant tax concerns, according to Nairametrics.
Kaduna Electric has flatly refuted claims that it owes N600 million in unpaid taxes, alleging that the Kaduna State Government is using “cheap blackmail” to divert scrutiny away from its debts.
“The state government has failed to honor payments for the last six months, resulting in a debt of N1.16 billion, they have not paid a dime to Kaduna Electric for electricity consumed since January 2024, resulting in a total outstanding amount of N2.9 billion,” it stated.
The firm denied that they owed N600 million in taxes, claiming that they owed less than N400 million and that they had been paying N20 million in agreed-upon monthly installments since January 2024.
“We stand by the fact that these payments have been honored,” it said.
Kaduna Electric has shown commitment to handling all tax-related issues properly since the new management took over in January. This includes adhering to settlement agreements with KIRS and making timely payments of taxes as required by law.
Despite these efforts, the government has taken extreme measures of shutting the headquarters, including the crucial command and control center, integral to the company’s operations.
The closure has significantly impacted Kaduna Electric’s ability to maintain full operational control. The dispatch center, essential for coordinating power supply, is now under lock and key.
The company has responded by turning on its backup recovery plan to carry on with business operations. However, this action restricts the company’s network visibility and control, which raises questions about supply safety.
The company also raised legal concerns regarding the shutdown. KIRS secured a court order to close the headquarters, but Kaduna Electric contends that the court lacks jurisdiction, as tax matters should be heard by the Tax Appeal Tribunal, a specialized court.
The legal counsel for the company emphasized that locking property for personal income tax is prohibited. However, it promised to abide by the court’s ruling.
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, all vital for ensuring a stable power supply.
