By Benson Daniel
Ajaokuta Steel Company Limited and its host community are at risk of losing electricity supply over outstanding obligations totalling N5.46 billion, according to the Nigerian Electricity Regulatory Commission’s 2025 Annual Report.
The debt comprises N4.96 billion in energy invoices issued by the Nigerian Bulk Electricity Trading Plc and another N500 million in service charges billed by the Market Operator during 2025.
NERC said neither the steel company nor its host community made any payment towards the two obligations during the year, raising concerns over the financial sustainability of electricity supply to the complex.
The regulator disclosed that the continued default had prompted it to escalate the matter to relevant Federal Government ministries for intervention and a lasting resolution.
It warned that failure to settle the outstanding obligations could result in the Ajaokuta complex being disconnected from its electricity service providers on the grounds of gross indebtedness.
The development comes as the Federal Government continues efforts to revive the Ajaokuta Steel Complex, one of Nigeria’s major industrial projects that has remained largely inactive for decades.
The mounting electricity debt adds another financial challenge to the complex’s revival, particularly as the government seeks to restore productive activities and maximise the facility’s contribution to Nigeria’s industrialisation drive.
The NERC report also highlighted payment challenges across Nigeria’s electricity market, with international and domestic bilateral customers recording different levels of remittance performance in 2025.
International bilateral customers comprising electricity customers in Niger, Benin and Togo were billed a combined $73.91 million for ancillary services provided by the Market Operator. They paid $62.75 million, representing an 84.90 per cent remittance rate.
Domestic bilateral customers performed better, with N13.20 billion billed for ancillary services and N12.75 billion collected, representing a 96.60 per cent remittance performance.
NERC said persistent payment failures remain a major concern for the liquidity and sustainability of the Nigerian Electricity Supply Industry, as electricity market participants struggle to meet financial obligations.
For Ajaokuta, the latest warning places additional pressure on authorities to address its accumulated liabilities as part of broader efforts to reposition the steel complex for meaningful industrial production.
A power disconnection would further complicate operations and could undermine efforts to restore the facility, making the resolution of the N5.46 billion obligation an important issue for both the government and the electricity market.
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