The Nigeria Revenue Service (NRS) has sealed the headquarters of Kaduna Electricity Distribution Company (KAEDCO) over outstanding statutory tax liabilities.
The enforcement action was carried out at the company’s headquarters in Kaduna following its alleged failure to settle its tax obligations despite previous notifications from the revenue authority.
A non-compliance notice signed by NRS Executive Chairman Zacch Adedeji was posted at the entrance of the company’s premises.
The notice stated that the owners and operators of the premises had failed to comply with their statutory obligations under Nigeria’s tax laws. The NRS also warned that any company officer or agent who interfered with the enforcement process could face prosecution and other penalties prescribed by law.
The revenue authority directed taxpayers seeking clarification or wishing to resolve outstanding obligations to contact its Debt Management and Enforcement Department in Abuja or visit the nearest enforcement office.
Kaduna Electric faces wider financial challenges
The tax enforcement comes as Kaduna Electric continues to deal with significant financial and operational difficulties.
In August, the Nigerian Electricity Regulatory Commission (NERC) dissolved the company’s board following what it described as severe financial insolvency and operational challenges.
NERC said KAEDCO had accumulated approximately N456.5 billion in total market obligations, including more than N118.6 billion in additional market debt under ASI Engineering Limited as of May 2026.
The regulator also reported that the company remitted only 41.93 percent of its adjusted market invoices in 2025 and recorded Aggregate Technical, Commercial and Collection (ATC&C) losses of 71.88 percent.
KAEDCO also invested N2.48 billion against a required capital expenditure of N24.51 billion, while customer metering coverage remained below 36 percent.
Interim management takes charge
Following the board dissolution, NERC appointed an interim management team headed by Abubakar Umar Hashidu as administrator.
The team was given responsibility for overseeing KAEDCO’s operations across Kaduna, Sokoto, Kebbi and Zamfara states while efforts are made to restructure the company.
NERC also said Afreximbank would coordinate a transparent 12-month process to identify a suitable replacement core investor.
Despite the financial difficulties, NERC said electricity distribution services across KAEDCO’s franchise area would continue.
The latest tax enforcement adds another layer of pressure on the distributor as it works to address its outstanding financial obligations and improve its operational performance.
SEO title: NRS Seals Kaduna Electric Over Unpaid Taxes Amid N456.5bn Debt
Meta description: Nigeria Revenue Service seals Kaduna Electric over unpaid taxes as the power distributor faces N456.5bn in market obligations and financial challenges.
