The Nigerian Electricity Regulatory Commission (NERC) has said it will address 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 does not pay its arrears.
Recall 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’s2024 Annual Report, Ajaokuta and the surrounding community did not pay for electricity consumed last year, leaving an outstanding debt of N5.63 billion.
This includes N5.19 billion in energy invoices from the Nigerian Bulk Electricity Trading Plc (NBET) and N0.44 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 referred the matter to relevant federal ministries for a lasting resolution.
“Ajaokuta Steel Co. Ltd and the host community did not make any payment for the N5.19 billion and N0.44 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.
