The Ajaokuta Steel Company Limited and its host community may lose access to electricity over unpaid bills amounting to N5.46bn, according to the Nigerian Electricity Regulatory Commission.
The Punch reported that the disclosure was contained in NERC’s 2025 Annual Report, which revealed that the steel company and the host community made no payments towards energy invoices and service charges issued by the Nigerian Bulk Electricity Trading Plc and the Market Operator during the year.
According to the commission, Ajaokuta Steel was billed N4.96bn by NBET for energy supplied in 2025 but failed to make any payment.
The company also did not settle a N500m service charge billed by the Market Operator.
The combined unpaid obligation consequently stood at N5.46bn.
“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 said.
NERC said the prolonged failure to pay had become a concern and had prompted it to refer the matter to relevant Federal Government ministries for intervention.
“The commission has escalated the issue of continual non-payment of electricity bills by Ajaokuta to the relevant federal ministries to find a lasting solution.
“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 the enormous resources committed to its construction.
The NERC report also highlighted payment challenges among some electricity market participants.
It stated that three international bilateral electricity customers—Société Nigérienne d’Électricité, Société Béninoise d’Énergie Électrique and Compagnie Énergie Électrique du Togo—were collectively invoiced $73.91m for ancillary services provided by the Market Operator.
The three companies paid $62.75m, representing an 84.90 per cent remittance rate.
By comparison, local bilateral customers received invoices totalling N13.20bn for ancillary services, of which N12.75bn was paid, giving a 96.60 per cent remittance performance.
The commission said the figures reflected the continuing financial pressure within Nigeria’s electricity market, where unpaid obligations pose a threat to the liquidity and long-term sustainability of the sector.
NBET handles bulk electricity trading, acting as an intermediary between power generators and distribution companies, while the Market Operator oversees the commercial administration of the electricity market.
For Ajaokuta, the latest warning is not entirely new, as NERC has issued similar threats over the years without the complex ultimately being disconnected.
