By Milcah Tanimu
The Kaduna State Internal Revenue Service (KADIRS) has taken the drastic step of sealing the Kaduna Electricity Distribution Company (KAEDCO) due to an unpaid tax debt of ₦600 million. This action follows a court order aimed at ensuring KAEDCO meets its tax obligations to the state.
KADIRS’ Executive Chairman, Jerry Adams, explained that the tax liability accrued between 2015 and 2022. Despite previous reconciliations and an agreement for KAEDCO to pay a significant portion of this amount, the company has failed to meet its commitment since the liability was established last year. Adams emphasized that the sealing of KAEDCO’s premises was a legal measure to enforce compliance.
He also urged businesses, individuals, and corporate entities to prioritize voluntary tax compliance to avoid such enforcement actions.
In related news, the Nigerian Electricity Regulatory Commission (NERC) has explained why it has not reverted to the old electricity tariff rates for Band A customers, despite a directive from the House of Representatives. The House had ordered a rollback of the recent tariff hike, but NERC Spokesperson Usman Arabi stated that the commission had not yet received official communication on the matter.
Band A customers, who reportedly receive up to 20 hours of daily power supply, currently pay ₦225 per kWh, up from the previous rate of ₦66. This tariff increase has also placed a financial burden on some federal universities classified as Band A, with the Secretary-General of the Committee of Vice-Chancellors of Nigerian Universities, Prof Yakubu Ochefu, noting that the higher energy bills have adversely impacted university operations.
