The Nigerian Electricity Regulatory Commission (NERC) says Ajaokuta Steel Company Limited (ASCL) might be disconnected from the national grid over N1.2 billion in electricity debt.
NERC in its first quarter report released on July 24, identified the moribund steel company as a special customer.
“The special customer (Ajaokuta Steel Co. Ltd and the host community) did not make any payment towards the ₦1.27 billion (NBET) and ₦0.09 billion (MO) invoices received in 2024/Q1,” NERC said.
“This continues a longstanding trend of non-payment by this customer and the Commission has communicated the need for intervention on this issue to the relevant FGN authorities.”
Advertisement
The electricity regulator added that a continuation of the non-payment by the steel company “may trigger total disconnection from the grid”.
On January 10, the Transmission Company of Nigeria (TCN) said it issued a 14-day suspension notice to ASCL for non-compliance with provisions of its market rules.
According to TCN, Ajaokuta steel had accrued a debt totalling N33.71 billion as of November 2023.
Advertisement
Less than 24 hours later, Shuaibu Audu, minister of steel development, said he would meet with the TCN and other stakeholders on the planned disconnection of Ajaokuta steel from the national grid.
Audu also said the president had approved the constitution of a committee comprising key stakeholders to revive the moribund Ajaokuta steel plant.
On May 23, Audu said the ministry has reached an advanced stage of raising more than N35 billion required to restart the light mill section (LMS) of Ajaokuta steel.
Audu said a presidential approval had been given to raise the amount from a local financial institution, as part of President Bola Tinubu’s administration’s resolve to raise the economic profile of Nigeria.
Advertisement
Add a comment
