The Nigerian Electricity Regulatory Commission (NERC) reports that Benin, Togo, and Niger owe Nigeria N9.41 billion, or $5.79 million, for electricity in Q2 2024. This represents an improvement from zero payments in Q1. The debt originates from services rendered under an international agreement, highlighting the challenges of payment compliance in the regional energy sector.
The Nigerian Electricity Regulatory Commission (NERC) has reported that the countries of Benin, Togo, and Niger collectively owe Nigeria a staggering N9.41 billion, equivalent to $5.79 million, for electricity supply during the second quarter of the current year. This information was disclosed in NERC’s latest quarterly report published over the weekend. According to an international treaty, Nigeria is responsible for supplying electricity to its neighboring countries, which includes Benin Republic, Togo, and Niger. The companies involved in this arrangement comprise Paras-SBEE and Transcorp-SBEE from Benin, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo. The accumulated debt by these international customers has marked a significant turnaround, given that they had made zero payments in the first quarter of this year. In its first quarter report, NERC indicated that the four international customers did not remit any payments for the electricity services rendered, which amounted to an invoice of $14.19 million. The report also highlighted that a total invoice of $15.60 million was presented to the four firms in the second quarter, but only $9.81 million was ultimately paid. Additionally, domestic bilateral consumers also contributed to the trend of non-payment, failing to settle N695.4 million out of N1.99 billion owed in the first quarter. In the second quarter of the year, international bilateral customers made a cumulative payment of $9.81 million against the total invoice of $15.60 million, demonstrating some progress. Similarly, domestic consumers completed a total payment of ₦1,295.90 million against an invoice of ₦1,991.30 million for services rendered during this same period.
The context of the NERC report revolves around Nigeria’s role as a supplier of electricity to its neighboring countries under an international agreement. The consistent electricity supply is crucial for these nations, which rely on Nigeria’s power resources. The financial dealings encapsulated in the NERC report are significant not only for Nigeria’s economy but also for the energy stability in the West African region. As these countries consume electricity from Nigeria, the credit owed represents a critical factor in the ongoing geopolitical and economic relationships among these nations. The fluctuations in repayment highlight challenges within the energy sector, such as credit risks, payment compliance, and the fiscal health of electricity providers.
In summary, the NERC has revealed that Benin, Togo, and Niger owe Nigeria N9.41 billion for electricity supplied in the second quarter of 2024. This amount signifies a recovery from the zero payment situation observed in the first quarter. Nonetheless, the partial payments against significant invoices underscore ongoing challenges for Nigeria’s electricity market and the broader implications for regional energy cooperation.
Original Source: www.ripplesnigeria.com
