The Ajaokuta Steel Company Limited and its host community may face disconnection from electricity supply over outstanding obligations amounting to N5.46bn, the Nigerian Electricity Regulatory Commission has warned.
According to The PUNCH, NERC disclosed this in its 2025 Annual Report, stating that the steel company and the host community failed to make any payment towards energy invoices and service charges issued by the Nigerian Bulk Electricity Trading Plc and the Market Operator throughout the year.
According to the report, Ajaokuta Steel incurred an energy bill of N4.96bn from NBET in 2025 but did not make any payment. It also failed to settle a N500m service charge billed by the Market Operator.
The two outstanding obligations bring the total debt to N5.46bn.
NERC said the continued failure to settle the bills had become a source of concern and prompted the commission to refer the matter to relevant Federal Government ministries for intervention.
The commission warned that the steel complex could be disconnected by its electricity service providers if the debt remained unpaid.
“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,” NERC stated.
The development comes as the Federal Government intensifies efforts to revive the Ajaokuta Steel Complex, which has remained largely inactive for decades despite its strategic importance to Nigeria’s industrial development.
NERC’s report also highlighted the payment performance of other electricity market participants in 2025.
It said three international bilateral electricity customers—Société Nigérienne d’Électricité, Société Béninoise d’Énergie Électrique and Compagnie Énergie Électrique du Togo—were billed a combined $73.91m for ancillary services provided by the Market Operator.
The companies paid $62.75m, representing an 84.90 per cent remittance rate.
In comparison, local bilateral electricity customers received invoices totalling N13.20bn for ancillary services and paid N12.75bn, representing a 96.60 per cent remittance performance.
The commission said the figures reflected the continuing financial pressures within Nigeria’s electricity market, where unpaid obligations affect the liquidity and sustainability of the sector.
NBET serves as an intermediary for bulk electricity transactions between generators and distribution companies, while the Market Operator oversees the commercial administration of the electricity market.
NERC has, however, issued similar warnings concerning Ajaokuta’s electricity debt in the past, raising questions about whether the latest threat will result in an actual disconnection.
