The Nigerian Electricity Regulatory Commission has raised an alarm that Ajaokuta Steel Company Limited and its host community may face imminent blackout from the national grid due to their failure to settle outstanding electricity debts totaling N5.63bn in 2024.
According to details from the 2024 Annual Report of the commission, Ajaokuta received energy supply and grid services during the year but did not remit any payments to the Nigerian Bulk Electricity Trading Plc and the Market Operator, prompting regulatory intervention.
“Ajaokuta Steel Co. Ltd and the host community did not make any payment for the N55.19bn and N440m energy invoices and service charges received from NBET and MO, respectively, in 2024,” the commission stated.
The NERC report noted that the situation has been escalated to relevant federal ministries to forestall the disruption of power supply to the critical industrial facility. However, it warned that persistent non-payment could result in the steel complex being disconnected.
“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,” it added.
The development comes amid concerns about mounting debts across the Nigerian Electricity Supply Industry, where distribution companies collectively owe billions to upstream suppliers. Ajaokuta Steel, a long-standing symbol of Nigeria’s industrial ambition, had remained largely dormant for decades despite repeated efforts at revival.
