Emmanuel Ochayi
Electricity distribution companies, via the Nigerian Electricity Regulatory Commission (NERC), have issued a warning to the Federal Government, raising concerns that failure to settle its mounting N25 billion electricity bill may lead to the disconnection of Ajaokuta Steel Co. Ltd from the national grid. NERC’s newly released 2022 annual report sheds light on the situation.
According to the report, Ajaokuta Steel Co. Ltd, representing the Federal Government, owes the power sector N25 billion for electricity supplied in 2022. As of December 31, 2022, NERC disclosed that the firm’s total debt to the Nigerian Bulk Electricity Trading and the Market Operator stands at approximately N23 billion and N2 billion, respectively.
Join our WhatsApp ChannelNERC emphasized, “No payment was made by the special customers (Ajaokuta Steel Co. Ltd and the host community) in respect of the N1.39 billion and N0.27 billion energy invoices and service charges received from NBET and MO, respectively. The total debt obligation of Ajaokuta to NBET and the MO as of December 31, 2022, stands at N22.98 billion and N2.08 billion, respectively.”
NERC has been in discussions with federal ministries to address this pressing issue and find a lasting solution to the non-payment of electricity bills. The consequences of failing to settle these obligations are severe, potentially jeopardizing the Ajaokuta complex, as NERC warns of disconnection by its service providers (NBET and MO) due to gross indebtedness.
In a separate document, NERC’s 2023 Quarter One report reveals that the debt has surged to about N27 billion. The report also highlights the remittance performances of international and bilateral customers to the power sector.
The Federal Government’s impending electricity bill crisis with Ajaokuta Steel serves as a challenge, emphasizing the need for prompt resolution to prevent potential disruptions in Nigeria’s energy supply.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
