Benin Republic and Togo Indebted to Nigeria for Electricity Costs

Benin Republic and Togo owe Nigeria $8.84 million for electricity consumed in Q4 2024. The NERC reports a remittance performance of 37.08% from international customers. Domestic customers also lagged with 63.36% payments. Ongoing non-payments from Ajaokuta Steel Co. highlight persistent issues. However, there was an increase in collection efficiency among Nigerian electricity distribution companies to 77.44%.

The Federal Government of Nigeria has disclosed that Benin Republic and Togo owe a total of $8.84 million for electricity consumption in the fourth quarter of 2024, as reported by The PUNCH. The Nigerian Electricity Regulatory Commission (NERC) provided this information in a report detailing payments made by various customers for services rendered during that period, highlighting a modest remittance performance of 37.08%.

This report indicates that six international bilateral customers, supplied by Generation Companies (Gencos) in Nigeria, made a combined payment of $5.21 million against an invoice of $14.05 million issued by the Market Operator. Notable payments include $2.65 million from Paras-SBEE and $1.64 million from Paras-CEET, both based in Benin. Furthermore, Transcorp-SBEE (Ughelli) paid $1.71 million from its $3.59 million invoice, while Transcorp-SBEE (Afam 3) contributed $0.90 million towards its $1.2 million due.

Odukpani-CEET in Togo owes $2.37 million, and only Mainstream-NIGELEC has settled its entire invoice of $2.60 million issued by the Market Operator. The NERC noted that domestic bilateral customers have collectively paid N1.25 million against an invoice of N1.98 million, achieving a remittance performance of 63.36%.

Additionally, some bilateral customers made payments towards outstanding invoices from previous quarters. Payments for outstanding amounts included $0.98 million from Paras-CEET, $0.7 million from Paras-SBEE, and $1.3 million from Transcorp-SBEE. Domestic bilateral customers also contributed N135.81 million towards earlier outstanding invoices, with noteworthy contributions from various entities.

The report indicated that Ajaokuta Steel Co. Ltd and the associated community did not make any payments toward significant invoices, revealing an ongoing trend of non-payment which the commission has brought to the attention of federal authorities for intervention. In the last three months of 2024, Nigerian electricity distribution companies reported total revenues of N509.84 billion, representing a collection efficiency of 77.44% against a total bill of N658.40 billion. This is a notable increase from the previous quarter’s efficiency of 74.55%.

In summary, Benin Republic and Togo currently owe Nigeria $8.84 million in electricity debts for the fourth quarter of 2024. While some international customers have made partial payments, domestic bilateral customers exhibited lower remittance performance. The report underscores concerns about ongoing non-payments from specific entities and highlights a slight improvement in collection efficiency among Nigerian electricity distribution companies.

Original Source: punchng.com