The Minister of Steel Development, Shuaibu Audu, says the federal government has commenced investigation into the N33 billion owed by the Ajaokuta Steel Mill to the Transmission Company of Nigeria, TCN.
The minister spoke barely 24 hours after the Steel Mill was disconnected from the national grid by TCN over the huge debt.
According to Audu, it is unfathomable that the government owned company could owe so much when there is no operations going on there for years. He spoke after a meeting with President Muhammadu Buhari in Aso Rock, Abuja.
According to the details provide by TCN, the N33 billion comprises N30.85bn for energy and capacity delivered by NBET and N2.22bn owed to service providers.
The minister said he has spoken to the management of the company saying “we’re going to get to the bottom of it.”
Audu said, “I mean these are some of the things that need to be clearly looked into. One of the things I spoke to the MD of Ajaokuta today, and this was one of the questions I asked and we’re going to get to the bottom of it: why consumption of so much electricity in a place that is not operating at full capacity.
“Part of what we also need to do is that we’re trying to revive Ajaokuta in a collegiate system, in piecemeal, and so we may not have the capacity to be able to pay all those outstanding amounts immediately.
“Part of what the MD of Ajaokuta told me is that most of them money is in interest payments. And NBET, the electricity company that has disconnected it is also a government agency.”
