Niger, Togo, and Benin Owe Nigeria N9.41 Billion in Electricity Arrears for Q2 2024 – NERC

The Nigerian Electricity Regulatory Commission reported that the Republics of Benin, Niger, and Togo owe Nigeria N9.41 billion for electricity supplied in Q2 2024, marking a recovery from previous non-payments in Q1. Total payments of $9.81 million were made against a $15.60 million invoice. Domestic consumers also showed notable debt, reinforcing the need for improved financial compliance across the sectors.

The Nigerian Electricity Regulatory Commission (NERC) has disclosed that the Republics of Benin, Niger, and Togo collectively owe Nigeria N9.41 billion (approximately $5.79 million) for electricity supplied during the second quarter of 2024. This information was revealed in the Commission’s latest quarterly report, released over the weekend. According to established international treaties, Nigeria is responsible for supplying electricity to neighboring countries, including Benin, Togo, and Niger. The firms involved in this arrangement are Paras-SBEE and Transcorp-SBEE from Benin, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo. This report indicates a significant improvement in payments from these international customers, considering that they had made no payments during the first quarter of the year. In the NERC’s report for Q1 2024, it was highlighted that none of these four customers made any payments on the total invoice of $14.19 million issued for that quarter. Moreover, the report revealed that the market operators issued a total invoice of $15.60 million to the four firms in Q2, of which only $9.81 million was received. Domestic customers also showed poor payment behavior, failing to remit a total of N695.4 million from N1.99 billion due in the same time frame. Despite the slow start to the year, in Q2 2024, the international customers collectively settled a total of $9.81 million against the outstanding invoices. In a parallel context, domestic bilateral customers paid a total of ₦1,295.90 million against the cumulative invoices issued to them.

The financial transactions regarding electricity supply between Nigeria and its neighboring nations are governed by international agreements that facilitate electricity exports. The Nigerian Electricity Regulatory Commission (NERC) monitors these transactions to ensure compliance and the timely collection of payments. The ongoing debts from these international customers have been a concern, especially as they significantly impacted Nigeria’s energy revenue, which is crucial for its economic stability.

In summary, the report by the NERC highlights the outstanding debts owed by the Republics of Benin, Niger, and Togo to Nigeria for electricity supplied in Q2 2024, amounting to N9.41 billion. This shows an improvement over previous quarters where no payments were made. Although international customers are beginning to remit payments, there remains a concerning debt among domestic consumers, emphasizing the need for better compliance in future transactions.

Original Source: www.ripplesnigeria.com