- The Nigerian Electricity Regulatory Commission (NERC) has warned that Ajaokuta Steel Company Limited could face disconnection from the national power grid due to an outstanding electricity debt of N1.2 billion.
In its quarterly report released on July 24, NERC highlighted Ajaokuta Steel Company as a significant defaulter.
The report noted that the company, along with its host community, failed to settle invoices totaling ₦1.27 billion from the Nigerian Bulk Electricity Trading Plc (NBET) and ₦0.09 billion from the Market Operator (MO) for the first quarter of 2024.
This persistent non-payment is part of a long-standing issue, prompting NERC to urge the Federal Government to take necessary actions.
Failure to address this issue could result in a complete disconnection from the national grid.
Earlier this year, on January 10, the Transmission Company of Nigeria (TCN) issued a 14-day suspension notice to Ajaokuta Steel for violating market regulations.
By November 2023, the company’s debt had reached N33.71 billion.
In response, Steel Development Minister Shuaibu Audu announced plans to consult with TCN and other stakeholders to address the potential disconnection.
He also revealed that the president had approved the formation of a committee to rejuvenate the Ajaokuta steel plant.
Furthermore, on May 23, Audu mentioned that efforts were underway to secure over N35 billion from local financial institutions to restart the plant’s light mill section, aligning with President Bola Tinubu’s goal to enhance Nigeria’s economic status.
