The Nigerian Electricity Regulatory Commission (NERC) has stated that Ajaokuta Steel Company Limited may be disconnected from the national electricity grid if Federal Government failure to settle its electricity bills of N25bn. This was contained in the 2022 NERC’s annual report.
The Federal Government, through the Ajaokuta Steel complex owed the power sector, Nigerian Bulk Electricity Trade (NBET) a total of about N25bn for electricity supplied in 2022.
It stated, “No payment was made by the special customers (Ajaokuta Steel Co. Ltd and the host community) in respect of the N1.39bn and N0.27bn energy invoices and service charges received from NBET and MO respectively. The total debt obligation of Ajaokuta to NBET and the MO as at 31st December 2022 stands at N22.98 billion11 and N2.08bn respectively.”
In a note, NERC explained that the issue of Ajaokuta had been a pressing one for the Commission, adding that engagements had been held with the responsible federal ministries to find a lasting solution to the non-payment of its electricity bills.
“Failure to settle the obligations may put the Ajaokuta complex at the risk of being disconnected by its service providers (NBET and MO) on the grounds of gross indebtedness”.
