- Nigeria is trying to recover $14.2 million in unpaid electricity bills from Niger, Benin Republic, and Togo.
- The Electricity Market Operator has been asked to enforce rules after these countries failed to pay their $14.19 million invoice for Q1 2024.
The Nigerian Electricity Regulatory Commission (NERC) has disclosed that Niger, Benin Republic, and Togo owe Nigeria a total of $14.2 million in unpaid electricity bills for the first quarter of 2024. This information, outlined in NERC’s Q1 2024 report, reveals that these neighbouring countries have failed to settle their invoices, raising concerns about payment discipline.
The NERC has responded by instructing the Electricity Market Operator (MO), part of the Transmission Company of Nigeria, to implement the relevant market rules to recover the outstanding debts. The MO, which manages the rules of the Nigerian Electricity Supply Industry (NESI), is tasked with ensuring the efficient operation of the electricity market and enforcing compliance.
The NERC report highlights that none of the four international bilateral customers supplied by Nigerian Generation Companies (Gencos) have paid against their cumulative invoice of $14.19 million for Q1 2024. The lack of payment is a significant issue, especially since previous reports have indicated similar problems.
While the NERC report notes that two international customers have recently paid $5.96 million in arrears, substantial debts remain unpaid. The debtor countries include Niger Republic, represented by its power utility NIGELEC; Benin Republic, through Société Béninoise d’Énergie Électrique (SBEE); and Togo, with its utility firm Compagnie Énergie Électrique du Togo (CEET).
The Nigerian government is contemplating additional regulatory measures to address this financial shortfall and ensure future compliance. The aim is to recover the $14.2 million owed and curb the payment indiscipline exhibited by these international customers.