The Nigerian Electricity Regulatory Commission (NERC) has disclosed that the Ajaokuta Steel Company Limited and its host community are at risk of being disconnected from electricity supply over unpaid obligations totalling ₦5.46 billion.
The commission said the outstanding debt forms part of accumulated financial obligations within the electricity supply chain and could result in the affected facilities losing access to power if the liabilities are not addressed.
The disclosure highlights the broader financial challenges facing Nigeria's electricity sector, where unpaid electricity bills and other outstanding obligations continue to place pressure on power distribution and supply operations.
NERC has repeatedly stressed the importance of timely payment for electricity consumed by government institutions, businesses and other customers to improve liquidity across the sector.
The commission said resolving outstanding debts remains critical to ensuring the sustainability of electricity supply and enabling operators within the sector to meet their financial obligations.
The potential disconnection of the Ajaokuta Steel Company and its host community could further affect operations and economic activities in the area if an agreement is not reached on the outstanding ₦5.46 billion obligation.
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