The Nigerian Electricity Regulatory Commission (NERC) has raised a red flag regarding Ajaokuta Steel Company Limited (ASCL), warning that the firm could face disconnection from the national grid due to an outstanding electricity debt of N1.2 billion.
In its first quarter report, released on July 24, NERC identified Ajaokuta Steel as a “special customer” with a significant payment issue. The report highlighted that ASCL and its host community failed to settle invoices totaling ₦1.27 billion from the Nigerian Bulk Electricity Trading (NBET) and ₦0.09 billion from the Market Operator (MO) for the first quarter of 2024.
NERC noted that this non-payment continues to be a troubling trend and has urged relevant federal government authorities to address the issue. The commission warned that continued non-payment could lead to a complete disconnection from the electricity grid.
This warning follows an earlier move by the Transmission Company of Nigeria (TCN) on January 10, which issued a 14-day suspension notice to ASCL for failing to comply with market rules. As of November 2023, the debt owed by Ajaokuta Steel had accumulated to N33.71 billion.
In response, the minister of steel development, Shuaibu Audu, announced plans to convene a meeting with TCN and other stakeholders to discuss the potential disconnection. Audu also revealed that President Bola Tinubu’s administration had approved the formation of a committee to revive the Ajaokuta steel plant.
