The Federal Government has announced plans to investigate the circumstances surrounding the non-operational Ajaokuta Steel Company Limited, which accrued a debt of N33 billion in electricity bills. The Transmission Company of Nigeria (TCN) recently disconnected the moribund steel company from the national grid due to its failure to settle the outstanding debt owed to the Nigerian Bulk Electricity Trading (NBET) and service providers.
The Minister of Steel Development, Shuaibu Audu, disclosed this development after a meeting with President Muhammadu Buhari at the Aso Rock Villa in Abuja on Thursday. The N33 billion debt includes N30.85 billion for energy and capacity delivered by NBET and N2.22 billion owed to service providers.
Minister Audu expressed bewilderment at the substantial electricity consumption by Ajaokuta Steel Company, considering its non-operational status. He emphasized the need to thoroughly investigate the matter and find a solution. He highlighted the government’s commitment to reviving Ajaokuta Steel Company in a phased approach but acknowledged the challenges of settling the outstanding electricity bills immediately.
The minister revealed that a significant portion of the outstanding amount was attributed to interest payments. He assured that discussions would be held to address the issue, considering the importance of reviving Ajaokuta Steel Company, which has been inactive for about 45 years.
Minister Audu emphasized the government’s determination to navigate the complexities of reviving Ajaokuta Steel Company and urged cooperation from relevant stakeholders. He acknowledged the difficulty in reviving an institution that has been non-functional for several decades but stressed the importance of collective support to create job opportunities and contribute to economic development.
Additionally, Minister Audu shared that President Buhari has approved the formation of a committee to identify a suitable location for establishing a new steel plant in the country. This decision follows an agreement between President Buhari and Jindal Steel of India, facilitated on the sidelines of the G20 summit in India in September. The committee, comprising critical stakeholders, aims to explore options for setting up a new steel plant in proximity to essential resources and infrastructure.
The government remains committed to addressing challenges in the steel sector, facilitating industrial growth, and creating employment opportunities for Nigerians.
