The Nigeria Revenue Service (NRS) has sealed the headquarters of Kaduna Electric in Kaduna over outstanding statutory tax liabilities. The enforcement action was carried out on the order of the Executive Chairman of the NRS, Zacch Adedeji. A non-compliance notice was pasted at the entrance of the company's premises, stating that the owners and operators had failed to meet their statutory tax obligations despite previous notifications.
A Kaduna resident, Adeyemi Idris, expressed frustration after visiting the company's office to purchase electricity tokens, only to find the premises locked. He lamented that despite the company generating revenue from residents, they struggle to fulfill their civic duties. Idris criticized the company's attitude towards customers, stating that they would be more aggressive if customers owed them money.
The NRS notice stated that the action was taken pursuant to the Nigeria Tax Act, Nigeria Tax Administration Act, and other extant tax laws. The revenue authority warned that any officer or agent of the company found to have breached tax regulations could be prosecuted and punished in accordance with the law. The NRS also cautioned against unauthorized interference with the enforcement process.
The NRS directed Kaduna Electric and other defaulting taxpayers seeking clarification or resolution of their tax liabilities to contact its Debt Management and Enforcement Department in Abuja or the nearest enforcement office. An official of Kaduna Electric stated that customers who came to the premises were asked to leave due to the absence of staff.
The development comes amid regulatory intervention in the affairs of Kaduna Electricity Distribution Company (KAEDCO). The Nigerian Electricity Regulatory Commission (NERC) recently dissolved the company's board of directors and appointed an interim management team to oversee its operations. Abubakar Umar Hashidu was appointed as administrator.
NERC stated that the intervention followed severe operational inefficiencies, failure to meet required capital expenditure targets, and accumulated market debt exceeding ₦456.5 billion. The regulatory action was taken pursuant to the Electricity Act 2023. The interim arrangement aims to address the company's performance issues.
The NRS's action against Kaduna Electric highlights the importance of tax compliance for businesses in Nigeria. The agency's efforts to enforce tax laws and regulations are ongoing, with a focus on engaging taxpayers and promoting voluntary compliance. The development serves as a reminder for companies to prioritize their tax obligations.
Key points
- The Nigeria Revenue Service sealed Kaduna Electric over outstanding tax liabilities.
- The enforcement action was carried out on the order of the Executive Chairman of the NRS, Zacch Adedeji.
- The development is part of a broader regulatory intervention in the affairs of Kaduna Electricity Distribution Company.
