Ajaokuta Steel faces power disconnection over N5.46 billion debt

Ajaokuta Steel could lose its electricity supply over a N5.46 billion unpaid bill, adding a fresh financial obstacle to efforts to revive Nigeria’s long-inactive steel complex.

The Nigerian Electricity Regulatory Commission said the company and its host community made no payment in 2025 toward a N4.96 billion energy invoice from the Nigerian Bulk Electricity Trading Plc. They also did not pay a N500 million service charge issued by the Market Operator.

“Ajaokuta Steel Co. Ltd and the host community did not make any payment for the N4.96bn and N0.50bn energy invoices and service charges received from NBET and MO, respectively, in 2025,” NERC said in its 2025 Annual Report.

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Ajaokuta Steel Co. Ltd and the host community did not make any payment for the N4.96bn and N0.50bn energy invoices and service charges received from NBET and MO, respectively, in 2025.

The commission has referred the continuing non-payment to relevant federal ministries for intervention. It warned that failure to settle the obligations could leave the Ajaokuta complex vulnerable to disconnection by NBET and the Market Operator “on the grounds of gross indebtedness.”

The debt highlights the financial pressures facing the complex and wider problems with electricity-bill payments among some government-linked institutions and large power users. NERC also reported that three international bilateral customers paid 84.90% of their combined $73.91 million invoice for ancillary services, while local bilateral customers paid 96.60% of N13.20 billion invoiced.

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Failure to settle the obligations may put the Ajaokuta complex at risk of being disconnected from its service providers (NBET and MO) on the grounds of gross indebtedness.