- Nigerian Electricity Regulatory Commission (NERC) reports that four international customers from Benin and Togo owe Nigeria $14.19 million for electricity supplied in Q1 2024, but no payments have been received.
- Despite some payments from other customers, the ongoing issue of unpaid debts, including $51.26 million from international consumers for 2023, highlights severe indiscipline that threatens Nigeria’s power sector stability.
As of August 22, 2024, the Nigerian Electricity Regulatory Commission (NERC) has reported that four international bilateral customers from Benin and Togo owe Nigeria $14.19 million for electricity supplied in the first quarter of 2024. Despite the significant outstanding amount, none of these customers have paid against the cumulative invoices issued by the market operator for the services rendered.
The entities involved include Para-SBEE and Transcorp-SBEE from Benin, which owe $3.15 million and $4.46 million, respectively. In Togo, Mainstream-NIGELEC has an outstanding balance of $1.21 million, while Odukpani-CEET owes $5.36 million. These unpaid bills reflect a broader issue of payment indiscipline that NERC is dealing with.
The report also indicates that local bilateral customers within Nigeria have similarly failed to pay a cumulative invoice of 1.86 million naira for the same quarter. Nevertheless, some payments were made: two international customers settled $5.96 million in outstanding invoices, and eight local customers contributed 505.71 million naira toward previous debts. Despite these payments, the persistent non-remittance by several others remains a significant concern for the commission.
NERC’s concerns about payment discipline are compounded by a report from May, which revealed that international customers had failed to remit approximately $51.26 million for electricity exported throughout 2023. This ongoing trend was further highlighted by reports showing that bilateral power consumers had neglected to pay about 7.61 billion naira to the Nigerian power sector last year.
The commission has condemned these payment failures, describing them as a serious issue that threatens the stability and efficiency of Nigeria’s power export operations. The Market Operator, part of the Transmission Company of Nigeria (TCN), is responsible for overseeing these transactions and enforcing compliance with market rules.
An analysis of industry data from 2023 shows alarming figures for unpaid remittances: international consumers failed to pay $16.11 million, $11.97 million, $11.16 million, and $12.02 million for electricity supplied in the first, second, third, and fourth quarters, respectively.
The Federal Government is expected to address these issues through diplomatic discussions to recover the outstanding debts and reinforce the importance of adhering to payment agreements. This situation impacts Nigeria’s revenue and poses risks to the reliability and sustainability of electricity supply in the region. Immediate action is needed to address these payment discrepancies and ensure the long-term viability of Nigeria’s electricity export sector.