The Nigeria Revenue Service (NRS) has sealed the headquarters of Kaduna Electric in Kaduna over alleged outstanding statutory tax liabilities. This enforcement action was carried out under the Nigeria Tax Act, Nigeria Tax Administration Act, and other extant tax legislation. According to the notice posted at the entrance of the company's premises, the company owners and operators had failed to meet their statutory tax obligations despite previous notifications.
The NRS Executive Chairman, Zacch Adedeji, ordered the enforcement action, which was carried out on Friday. An official with the company, who pleaded anonymity, told the News Agency of Nigeria (NAN) that the notice was posted on Friday, and customers were directed to leave because there were no staff available to attend to them. The revenue authority warned that any officer or agent of the company involved in breaching tax regulations remained liable to prosecution and punishment under the law.
The NRS also cautioned against unauthorized interference with the enforcement process, stressing that the sealed notice must not be removed without authorization. The authority directed business owners and defaulting taxpayers seeking resolution or clarification to contact the NRS Debt Management & Enforcement Department in Abuja or visit the nearest enforcement office. This move is part of the NRS's efforts to ensure compliance with tax laws and regulations in Nigeria.
The Nigerian Electricity Regulatory Commission (NERC) recently issued Interim Order No. NERC/2026/086, dissolving the Board of Directors of the Kaduna Electricity Distribution Company (KAEDCO). The order was signed by NERC Chairman, Dr. Musiliu Oseni, and Commissioner for Legal, Licensing and Compliance, Mr. Dafe Akpeneye. NERC cited severe operational inefficiencies, failure to meet required capital expenditure targets, and a cumulative market debt exceeding ₦456.5 billion as reasons for the regulatory intervention.
The intervention was issued pursuant to the Electricity Act 2023, and NERC appointed an interim management team led by Mr. Abubakar Umar Hashidu as Administrator to oversee KAEDCO's operations. The team is to oversee operations across Kaduna, Sokoto, Kebbi, and Zamfara while restructuring efforts are undertaken. This move aims to address the company's operational and financial challenges.
The NRS's action against Kaduna Electric is part of a broader effort to enforce tax compliance among businesses in Nigeria. The service has warned companies to meet their statutory tax obligations, and those that fail to comply will face consequences. The NRS has also cautioned against fake job vacancy adverts and other forms of tax-related malfeasance.
The sealing of Kaduna Electric's headquarters highlights the challenges facing the power sector in Nigeria, including issues related to governance, operational efficiency, and financial management. The company's cumulative market debt of ₦456.5 billion and failure to meet capital expenditure targets led to the dissolution of its Board of Directors. The interim management team's appointment aims to address these challenges and ensure the company's stability.
Key points
- The Nigeria Revenue Service sealed Kaduna Electric's headquarters over unpaid taxes.
- NERC dissolved KAEDCO's Board of Directors due to operational inefficiencies and financial challenges.
- The NRS warned companies to meet their statutory tax obligations to avoid consequences.
