NERC says moribund complex and host community made no payment towards 2025 electricity and service invoices…..
The long-dormant Ajaokuta Steel Company Limited and its host community could be cut off from electricity supply over unpaid obligations of N5.46 billion, according to the Nigerian Electricity Regulatory Commission (NERC).
The regulator disclosed this in its 2025 Annual Report, revealing that the steel complex and the host community made no payments towards electricity and service invoices issued by the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator throughout the year.
Ajaokuta accumulated an energy invoice of N4.96 billion from NBET in 2025 but failed to make any payment. It also did not settle the N500 million service charge billed by the Market Operator.
The two unpaid obligations brought the total amount owed to N5.46 billion.
“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,” NERC stated.
The regulator said the persistent default had become serious enough to require intervention from the Federal Government, adding that the matter had been referred to the relevant ministries in an effort to find a permanent solution.
NERC warned that continued failure to settle the debt could ultimately result in the Ajaokuta complex losing access to electricity from its service providers.
“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,” the commission said.
The disclosure comes as the Federal Government renews efforts to revive the Ajaokuta Steel Complex, which has remained largely inactive decades after construction of the giant industrial project began.
Ajaokuta debt mirrors wider electricity market pressure
The N5.46 billion obligation highlights the financial difficulties facing the complex and adds to broader concerns over unpaid electricity bills across Nigeria’s power sector.
NERC’s report also showed that international bilateral electricity customers fell short of fully settling their obligations for ancillary services provided by the Market Operator in 2025.
The three international customers — Société Nigérienne d’Électricité, Société Béninoise d’Énergie Électrique and Compagnie Énergie Électrique du Togo — were collectively invoiced $73.91 million.
They paid $62.75 million, representing an 84.90 per cent remittance performance.
Local bilateral customers performed better during the period. NERC said they received invoices totalling N13.20 billion for ancillary services but paid N12.75 billion, translating to a remittance performance of 96.60 per cent.
The figures point to persistent liquidity challenges within the Nigerian Electricity Supply Industry, where delays or failures in settling financial obligations can affect the ability of market participants to meet their own commitments.
NBET operates as the bulk electricity trading 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.
NERC has previously raised concerns over the complex’s unpaid electricity obligations and threatened possible disconnection. However, similar warnings in the past have not resulted in a corresponding disconnection.
The latest disclosure therefore raises questions over whether the regulator’s renewed threat will finally lead to action against the complex or produce another intervention by the Federal Government as efforts continue to revive the long-stalled steel project.
