The Federal Government of Nigeria has announced plans to investigate the reasons behind the obsolete Ajaokuta Steel Company Limited accumulating a staggering N33 billion in electricity bills. The Transmission Company of Nigeria (TCN) recently disconnected the steel company from the national grid due to the debt owed to the Nigerian Bulk Electricity Trading PLC (NBET) and service providers.
Minister of Steel Development, Shuaibu Audu, expressed concerns about the significant electricity consumption by the steel company, which has not been operating at full capacity. The accumulated debt led to the TCN’s decision to disconnect Ajaokuta Steel Company from the national grid.
Audu emphasized that a thorough investigation would be conducted to understand why the steel firm incurred such a substantial electricity bill when it was not operating at its full capacity. He mentioned that the Ministry of Steel Development is working to revive Ajaokuta in a phased approach, acknowledging that the accumulated debt might not be paid off immediately.
The minister highlighted the need for transparent communication and collaboration to address the challenges faced by Ajaokuta Steel Company, emphasizing that the government is committed to reviving the steel plant, which has been dormant for about 45 years.
Additionally, Audu revealed that the ministry has received approval from President Bola Tinubu to form a committee to identify a suitable site for the establishment of a new $5 billion steel plant in Nigeria. The decision to set up the plant was reached between President Tinubu and Jindal Steel of India during the last G20 summit. Representatives of Jindal Steel are expected to arrive in the country soon to discuss the project, and the committee will include critical stakeholders from various government ministries.
As the investigation unfolds and efforts to revive Ajaokuta Steel Company continue, the Nigerian government aims to create jobs and stimulate economic growth through strategic initiatives and collaborations.