Power Disconnect Warning: Ajaokuta Steel Company At Risk For N33 Billion Debt, Says TCN

In a statement released on Wednesday through its market operator, Edmund Eje, the Transmission Company of Nigeria (TCN) disclosed that Ajaokuta Steel Company Limited (ASCL) has amassed a debt of N33.71 billion as of November 2023….CONTINUE READING

TCN asserted that it had previously informed ASCL about its non-compliance with the Market Rules on March 20, 2023, urging corrective actions within a specified period. This notification was publicized in The Nation, Daily Sun, and This Day newspapers.

Despite interventions by the Minister of Power, as reported by TCN, enforcement actions were temporarily paused to allow ASCL an opportunity to address its defaults. However, TCN expressed regret that the issue of non-compliance by ASCL persists.

To prevent disconnection, TCN stipulated that ASCL must settle all outstanding invoices and provide a sufficient “Bank Guarantee of N70,177,727.39 for MO’s invoice and N320,000,000.00 for NBET’s invoice, within fourteen [14] days from the date of this notice.”

TCN emphasized that failure to rectify these defaults within the specified period would result in the disconnection of ASCL’s network from the National Grid, in accordance with section 45 of the Market Rules.

The statement further clarified, “Furthermore, should the defaults still remain unresolved after 30 business days of disconnection, the Market Operator will proceed to terminate ASCL’s Market Participation Agreement and escalate the non-compliance matter to the Nigerian Electricity Regulatory Commission (NERC) for Business Continuity Regulation to commence.”