N5.63bn Electricity Debts: NERC To Disconnect Ajaokuta Steel, Community

The Nigerian Electricity Regulatory Commission (NERC) has announced plans to disconnect Ajaokuta Steel Company Limited and its host community due to a mounting electricity debt of N5.63 billion. The industrial complex, located in Kogi State, has been warned to pay its arrears to avoid a power supply cut.

Ajaokuta Steel Plant, a major industrial project aimed at driving Nigeria's industrialization, has been largely inactive for a decade but continues to incur energy costs. Efforts to revive the plant have faced challenges such as funding and policy inconsistencies.

The NERC's 2024 Annual Report revealed that Ajaokuta and its surrounding community owe N5.63 billion for electricity consumed last year, including outstanding debts to Nigerian Bulk Electricity Trading Plc (NBET) and Market Operator (MO). The NERC has escalated the issue to the federal ministry for a lasting solution, warning that failure to settle the debt may result in disconnection from the service provider.