What Niger, Togo, Benin Owe Nigeria In Electricity Bills For Q1 2023 – NERC

What Niger, Togo, Benin Owe Nigeria In Electricity Bills For Q1 2023 – NERC

The Nigerian Electricity Regulatory Commission (NERC) has disclosed that three international customers have failed to pay $16.11 million owed for electricity supply during the first quarter (Q1) of 2023…CONTINUE READING

According to calculations using the Central Bank of Nigeria’s (CBN) exchange rate as of August 8, 2023 ($1 = ₦768.767), these three international customers are collectively in debt for N12.38 billion.

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Nigeria, as per an international treaty, exports electricity to neighboring nations such as Benin Republic, Togo, and Niger.

The NERC’s Q1 2023 report indicates that the mentioned electricity value was sold to four companies across three countries.

These companies are Paras-SBEE and Transcorp-SBEE from Benin Republic, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo.

The report states, “None of the listed international customers made any payment against the combined $16.11 million invoice issued to them in Q1 2023: Paras-SBEE ($3.46 million), Transcorp-SBEE ($3.85 million), Mainstream-NIGELEC ($5.48 million), and Odukpani-CEET ($3.32 million).”

During the quarter, invoices totaling N842.38 million were issued by the Market Operations (MO) to all eight bilateral customers in the Nigerian Electricity Supply Industry (NESI). However, only North-South/Star Pipe remitted ₦15.38 million against their ₦24.69 million invoice, resulting in a cumulative remittance performance of 1.83 percent for the period.

NERC explained that the ongoing trend of non-remittance by international and bilateral customers necessitates invoking market rules to address the payment indiscipline displayed by various market participants.

Additionally, under the arrangement for special customers, both Ajaokuta Steel Company Limited and the host community did not make any payments toward the ₦0.38 billion (NBET) and ₦0.08 billion (MO) invoices received in Q1 2023.

As of March 2023, Ajaokuta Steel Company Limited had outstanding debts of ₦26,715,043,905.73 to NBET and ₦1,739,966,505.69 to the MO. NERC has communicated this longstanding debt to the federal government for necessary interventions. The document also highlights that this non-payment trend by the customer has been an ongoing issue, and the commission has communicated the necessity for intervention to the relevant ministries of the federal government.