The Federal Government has been informed by power distribution companies via the Nigerian Power Regulatory Commission that its facility, Ajaokuta Steel Co. Ltd, may be disconnected from the national grid if its electricity bills totaling N25bn are not paid.
The warning was contained in NERC annual reports made available to journalists on Monday, according to The PUNCH.
According to the report, the Federal Government owes the power sector a total of nearly N25 billion for electricity delivered in 2022 through the Ajaokuta Steel Co. Ltd.
NERC stated that as of December 31, 2022, the firm’s total debt to Nigerian Bulk Electricity Trading and the Market Operator was approximately N23 billion and N2 billion, respectively, for a total of around N25 billion.
It read, “The special customers (Ajaokuta Steel Co. Ltd. and the host community) made no payment with respect to the N1.39 billion and N0.27 billion energy invoices and service costs received from NBET and MO respectively. As of December 31, 2022, Ajaokuta owed NBET and the MO a combined N22.98 billion11 and N2.08 billion, respectively.”
In a note, NERC stated that the commission had been particularly concerned about the situation in Ajaokuta and that discussions had taken place with the relevant federal ministries to find a long-term solution to the city’s unpaid electricity bills.
“Failure to settle the obligations may put the Ajaokuta complex at risk of being disconnected by its service providers (NBET and MO) on the grounds of gross indebtedness,” NERC added.
The debt had increased to almost N27 billion, according to a different document, the NERC’s 2023 Quarter One report.
The report also emphasized the contributions made by bilateral and international clients to the power sector.
