NERC To Disconnect Ajaokuta Steel, Community Over ₦5.63bn Electricity Debts
The Nigerian Electricity Regulatory Commission (NERC) has raised an alarm over the mounting electricity debts of Ajaokuta Steel Company Limited and its host community.
The company is located in the Ajaokuta Local Area of Kogi State.
The commission warned that the industrial complex could be cut off from the power supply if it fails to clear its arrears.
THE WHISTLER recalls that the Ajaokuta Steel Plant, a major industrial project conceived to drive Nigeria’s industrialisation, has been largely inactive for decades but continues to incur energy costs.
Efforts to revive the plant have faced multiple setbacks, including funding challenges, and policy inconsistencies.
According to the Commission’s 2024 Annual Report, Ajaokuta and the surrounding community made no payments for electricity consumed last year, leaving an outstanding debt of ₦5.63 billion.
This includes ₦5.19 billion in energy invoices from the Nigerian Bulk Electricity Trading Plc (NBET) and ₦0.44 billion in service charges from the Market Operator (MO).
NERC described the non-payment as part of a longstanding indebtedness that has weakened the electricity market, adding that it has referred the matter to relevant federal ministries to seek a lasting resolution.
“Ajaokuta Steel Co. Ltd and the host community did not make any payment for the
₦5.19 billion and ₦0.44 billion energy invoices and service charges received from
NBET and MO, respectively, in 2024.
“The Commission has escalated the issue of
continual non-payment of electricity bills by Ajaokuta to the relevant federal
ministries to find a lasting solution.
“Failure to settle the obligations may put the
Ajaokuta complex at risk of being disconnected from its service providers (NBET and
MO) on the grounds of gross indebtedness”, the report stated.
NERC To Disconnect Ajaokuta Steel, Community Over ₦5.63bn Electricity Debts is first published on The Whistler Newspaper
