Ajaokuta Steel Company Limited, a moribund steel mill, faces imminent disconnection from the power grid due to its failure to settle a N1.27 billion electricity debt incurred in the first quarter of 2024. Despite being classified as a special customer, the company and its host community have not made any payments towards the outstanding bills, prompting the Nigerian Electricity Regulatory Commission (NERC) to express disappointment and warn of disconnection.
This marks a continuation of the company’s longstanding trend of non-payment, which has prompted NERC to urge the Federal Government to intervene and prevent total disconnection from the grid. In January, the Transmission Company of Nigeria (TCN) temporarily disconnected Ajaokuta Steel Company from the national grid over an unpaid debt of N33 billion, comprising N30.85 billion for energy and capacity delivered by the Nigerian Bulk Electricity Trading Plc (NBET) and N2.22 billion owed to service providers.
The disconnection was later reversed following government interventions. However, the Minister of Steel Development, Shuaibu Audu, has expressed concerns over the company’s electricity consumption, given its non-operational status. Audu has pledged to investigate the matter and work towards reviving the steel company, which has been out of operation for approximately 45 years.
The 24-hectare steel mill, considered the largest in sub-Saharan Africa, has remained largely static since its abandonment in 1984. Despite efforts to revitalize it, the company’s struggles persist, with Nigeria’s annual steel imports valued at $8 billion.
