- The debt accrued by Ajaokuta Steel comprised N30.8bn for energy and capacity delivered by NBET and N2.2bn owed to service providers.
- TCN says ASCL defaults remain unresolved despite intervention by the minister of power.
The Transmission Company of Nigeria (TCN) has disconnected Ajaokuta Steel Company Limited (ASCL) from the national grid as the firm failed to clear a debt of N33 billion owed to the Nigerian Bulk Electricity Trading PLC (NBET) and service providers. TCN announced its decision in a letter dated January 4, 2024, signed by the acting executive director, E.A. Eye, and an independent system operator. The debt comprised N30.8bn for energy and capacity delivered by NBET and N2.2bn owed to service providers.
The letter read, “This is a formal suspension notice to ASCL due to non-compliance with provisions of the Market Rules as of the November 2023 billing cycle. ASCL has accumulated a total outstanding debt of N33,071,002,129.49, comprising N30,849,749,981.01 for energy and capacity delivered by NBET and N2,221,252,148.48 owed to service providers. On March 20, 2023, the MO notified ASCL of non-compliance with the Market Rules and requested corrective actions within a specified period, as advertised in three national newspapers.
“Despite a ministerial intervention by the Minister of Power, which temporarily halted enforcement actions to allow Ajaokuta Steel Company Limited (ASCL) the opportunity to rectify its defaults, these defaults remain unresolved. Failure to rectify these defaults within the specified period will lead to the disconnection of ASCL’s network from the national grid under Section 45 of the market rules.”