Facing possible disconnection from the power grid is the Ajaokuta Steel Company Limited, as a result of its failure to settle the N1.27bn electricity debt accumulated in the first quarter of this year.
Considered a special customer, the Nigerian Electricity Regulatory Commission has revealed that both Ajaokuta Steel Company and the host community have not made any payments towards the N1.27bn (Nigerian Bulk Electricity Trading Plc) and N0.09bn (Market Operator) invoices received between January and March 2024.
Expressing disappointment at the prolonged non-payment history of the steel company, the regulatory body has called for urgent intervention by the Federal Government to prevent a complete disconnection from the grid.
“This continuous failure to pay by this customer has been ongoing for a considerable period, and the commission has highlighted the necessity for government intervention to address this issue,” stated NERC.
The threat of total disconnection from the grid looms if non-payment persists,” NERC warned.
In a previous incident in January, the Transmission Company of Nigeria (TCN) disconnected ASCL from the national grid due to its failure to settle a N33bn debt owed to NBET and service providers.
This debt includes N30.85bn for energy and capacity provided by NBET and N2.22bn owed to service providers.
Subsequent government interventions led to the reconnection of Ajaokuta Steel Company after the disconnection.
Upon investigation, the Minister of Steel Development, Shuaibu Audu, expressed bewilderment at the company’s high electricity debt accumulation despite operating below full capacity.
Audu revealed, “We are investigating why there was such high electricity consumption in a partially operational facility.”
Efforts are underway to revitalize Ajaokuta Steel Company, a mammoth steel complex abandoned for over four decades.
Despite government initiatives, the company remains largely dormant, with periodic operation of the light mills.
During an interactive session in April with the House of Representatives Committee on Steel Development, the minister highlighted that Nigeria’s annual steel imports amount to $8bn.