The Nigeria Revenue Service has sealed the headquarters of Kaduna Electricity Distribution Company in Kaduna over alleged failure to meet its statutory tax obligations.
The enforcement action followed the issuance of a non-compliance notice at the entrance of the company’s premises on the directive of the NRS Executive Chairman, Zacch Adedeji.
The action was carried out under the provisions of the Nigeria Tax Act, Nigeria Tax Administration Act and other relevant tax laws.
According to the notice, the owners and operators of the electricity distribution company failed to fulfil their statutory obligations despite previous notifications.
The revenue authority warned that any officer or agent of the company who interfered with tax regulations could face prosecution and other penalties prescribed by law.
The NRS also warned against unauthorised removal or interference with the sealed notice, directing defaulting taxpayers seeking clarification or resolution to contact its Debt Management and Enforcement Department in Abuja or the nearest enforcement office.
An official of Kaduna Electric, who spoke on condition of anonymity, said the notice was posted on Friday.
The official added that customers who arrived at the premises were asked to leave because there were no staff available to attend to them.
The development comes amid ongoing regulatory challenges facing Kaduna Electric.
In August, the Nigerian Electricity Regulatory Commission dissolved the company’s board and commenced a regulatory intervention following what it described as severe financial and operational challenges.
NERC said the company had accumulated cumulative market obligations of about ₦456.5 billion as of May 2026. It also cited poor market remittance, high technical and commercial losses, inadequate capital investment and low customer metering coverage as some of the issues affecting the company.
As part of the intervention, NERC appointed an interim management team led by Dr Abubakar Umar Hashidu as Administrator to oversee the company’s operations.
The interim management is responsible for overseeing electricity distribution across Kaduna, Sokoto, Kebbi and Zamfara while measures are taken to stabilise and restructure the company.
The latest tax enforcement therefore adds another challenge to the electricity distributor as it continues efforts to address its financial and operational difficulties.
About the Author
