Kaduna Electric Distribution Company Under Scrutiny as Revenue Service Demands Outstanding Liabilities
The Kaduna Electric Distribution Company (KAEDCO) is facing intense scrutiny as the Kaduna State Internal Revenue Service (KDIRS) has instructed Ministries, Departments, and Agencies (MDAs) to process all outstanding liabilities owed by the company. The directive was given by Jerry Adams, the Executive Chairman of KDIRS, on Sunday.
The move comes after KAEDCO disconnected the Kaduna State Government House over an alleged N2.9 billion debt. Adams explained that KDIRS invoked Section 3, Subsection 2 (b) and (c) of the Kaduna State Tax Codification and Consolidation Law, which mandates the collection and enforcement of taxes, levies, fees, and rates due to all MDAs and local governments in the state.
According to Adams, the sealing of the KAEDCO head office was due to a N600 million tax liability. However, other levies, fines, and rates owed by the company remain unresolved. As a result, KDIRS has directed several state MDAs to submit their outstanding liabilities for enforcement, including the Kaduna State Geographic Information Service (KADGIS), Kaduna State Water Administration Corporation (KADSWAC), Kaduna State Water Regulatory Commission, and Kaduna Environmental Protection Agency (KEPA).
Adams emphasized that KDIRS is committed to equitable taxation and will not impose excessive tax burdens on the poor. Instead, the agency will target tax-evasive and non-compliant organizations and high-net-worth individuals. He added that KDIRS remains open to dialogue with KAEDCO and all relevant stakeholders to resolve issues amicably.
The development highlights the ongoing challenge of balancing investment incentives with strict enforcement of tax compliance in Kaduna. As the state government continues to implement its revenue collection strategies, KAEDCO and other entities will need to comply with tax laws to avoid further consequences.
The Kaduna State Internal Revenue Service is dedicated to ensuring fair taxation and will take necessary actions against entities that fail to comply with tax laws, irrespective of their status. The agency’s commitment to transparency and accountability is expected to bring about a more efficient and effective tax collection system in the state.
