NERC Flags ₦26bn Power Debt as Togo, Niger, Benin, Ajaokuta Steel Default
The Nigerian Electricity Regulatory Commission (NERC) has disclosed that several domestic and international electricity consumers—including neighbouring West African countries and Ajaokuta Steel Company Limited—owe Nigeria billions of naira in unpaid power bills.
According to NERC, Ajaokuta Steel Company Limited and its host community failed to settle electricity invoices amounting to over ₦1.13 billion in the third quarter of 2025. The Commission said the special customer did not make any payment towards the ₦1.03 billion invoice issued by Nigerian Bulk Electricity Trading Plc (NBET), as well as ₦0.10 billion invoiced by the Market Operator (MO) during the period.
In its Third Quarter 2025 Report, NERC described the non-payment as part of a persistent pattern, noting that the issue has been escalated to relevant Federal Government authorities for intervention.
“The special customer (Ajaokuta Steel Co. Ltd and the host community) did not make any payment towards the ₦1.03 billion (NBET) and ₦0.10 billion (MO) invoices received in 2025/Q3.
This continues a longstanding trend of non-payment by this customer, and the Commission has communicated the need for intervention on this issue to the relevant FGN authorities,” NERC stated.
Ajaokuta Steel, conceived as an integrated steel complex, was designed to serve as a major metallurgical and engineering hub capable of stimulating critical upstream and downstream industrial activities essential for Nigeria’s economic diversification. However, its long-standing operational challenges continue to weigh on the power sector.
Meanwhile, NERC also revealed that Togo, Niger Republic, and Benin Republic owe Nigeria a combined $17.8 million, equivalent to over ₦25 billion at current exchange rates, for electricity supplied under bilateral power agreements.
The Commission reported that the three international bilateral customers remitted only $7.12 million out of a cumulative $18.69 million invoice issued by the Market Operator for electricity supplied in the third quarter of 2025. This represents a remittance performance of just 38.09 per cent.
On the domestic front, bilateral electricity customers recorded stronger performance, remitting ₦3.19 billion out of ₦3.64 billion invoiced for the quarter, translating to a remittance rate of 87.61 per cent.
NERC added that some customers also cleared portions of outstanding debts from previous quarters, with the Market Operator receiving an additional $7.84 million from international bilateral customers and ₦1.30 billion from domestic bilateral customers.
