NERC Warns Ajaokuta Steel, Host Community Over ₦5.63bn Unpaid Electricity Bills

The Nigerian Electricity Regulatory Commission (NERC) has raised the alarm over mounting unpaid electricity bills by the Ajaokuta Steel Company Limited and its host community in Kogi State, warning that they risk disconnection if the debt remains unsettled.

According to the Commission’s 2024 Annual Report, the debts amount to ₦5.63 billion, comprising ₦5.19 billion in energy invoices from the Nigerian Bulk Electricity Trading Plc (NBET) and ₦440 million in service charges owed to the Market Operator (MO).

The industrial complex, once envisioned as a cornerstone of Nigeria’s industrialisation, has been largely inactive for decades but continues to accrue significant electricity costs. NERC described the non-payment as part of a long-running indebtedness that has weakened the country’s electricity market.

The Commission confirmed that the matter has been referred to relevant federal ministries in a bid to find a sustainable resolution. However, it stressed that persistent failure to meet payment obligations could lead to the disconnection of both the steel plant and its host community from power supply.

The Ajaokuta Steel Plant has faced repeated challenges in its revival, including funding shortfalls, policy inconsistencies, and stalled rehabilitation projects, leaving it a costly but idle national asset.