Nigerian Govt To Probe Ajaokuta Steel N33bn Electricity Debt Amid TCN Disconnection

The Nigerian Government announced on Thursday its intention to investigate how the Ajaokuta Steel Company Limited (ASCL) amassed N33 billion in electricity debt.

The revelation came from the Minister of Steel Development, Shuaibu Audu, who, after meeting with President Bola Tinubu, expressed bewilderment at the debt incurred by the non-functioning steel giant.

Audu while addressing reporters, questioned the electricity consumption of a company not operating at full capacity.

He stated, “One of the things I spoke to the MD of Ajaokuta today, and this was one of the questions I asked and we’re going to get to the bottom of it: why consumption of so much electricity in a place that is not operating at full capacity.”

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The Transmission Company of Nigeria (TCN) disconnected ASCL from the national grid on Wednesday, citing the failure to settle the N33 billion debt owed to the Nigerian Bulk Electricity Trading (NBET) and service providers.

The task of reviving Ajaokuta Steel Company is such that cannot happen overnight, highlighting the need for support from all quarters, he said.

Furthermore, Audu revealed President Tinubu’s approval to establish a committee tasked with finding an appropriate site for a new steel plant in the country, following discussions with Jindal Steel of India.

Audu outlined plans to involve key stakeholders, including the Minister of Finance, CME, Minister of Trade and Investments, Minister of Defense, and Minister of Solid Minerals, in the committee’s formation to propel the project forward.