Benin and Togo owe Nigeria $8.84 million for electricity consumed in Q4 of 2024. The Nigerian Electricity Regulatory Commission reported a remittance performance of 37.08% by international customers, with only Mainstream-NIGELEC paying its full invoice. Domestic customers also demonstrated a collection efficiency of 63.36%. Ajaokuta Steel Co. Ltd has not made payments on its invoices, prompting intervention appeals. Overall, electricity distribution companies achieved a collection efficiency of 77.44% in Q4 2024, an increase from the previous quarter.
According to a report from The PUNCH, Benin Republic and Togo owe Nigeria a total of $8.84 million for electricity consumed during the fourth quarter of 2024. This information was disclosed by the Nigerian Electricity Regulatory Commission (NERC), which outlined the payments made by international and bilateral customers for the services rendered by the Market Operator.
The report indicates that six international bilateral customers sourced electricity from Nigerian providers, making a total payment of $5.21 million against a cumulative invoice of $14.05 million. This resulted in a remittance performance of 37.08 percent for services in the fourth quarter. The breakdown includes payments from different entities in Benin and Togo, with Paras-SBEE in Benin repaying $2.65 million and Odukpani-CEET in Togo holding an outstanding debt of $2.37 million.
Furthermore, the report revealed that the sole exception among the companies was Mainstream-NIGELEC, which fully paid its $2.60 million invoice. Domestic bilateral customers also reported payments totaling N1.25 million against the N1.98 million invoice, achieving a remittance performance of 63.36 percent.
There were payments received during this reporting period for outstanding invoices from previous quarters; notable contributors included Paras-CEET and Transcorp-SBEE, who collectively paid $2.98 million. In addition, domestic bilateral customers contributed N135.81 million towards previously outstanding invoices.
The NERC noted that the special customer, Ajaokuta Steel Co. Ltd, failed to pay its N1.27 billion and ₦0.11 billion invoices, consistent with a historical absence of payments. This has prompted the commission to seek intervention from relevant authorities regarding this ongoing issue.
In total, Nigerian electricity distribution companies generated N509.84 billion in revenues during the last quarter of 2024, reflecting a collection efficiency of 77.44 percent, compared to 74.55 percent recorded in the previous quarter. This marks an increase in collection efficiency which indicates positive steps towards improved financial management within the sector.
The electricity debt owed by Benin Republic and Togo to Nigeria underscores ongoing challenges faced in remittance collection within the regional electricity supply framework. While international customers show varying payment performances, certain entities continue to default on their obligations, particularly Ajaokuta Steel Co. Ltd. The increase in revenue collection efficiency among Nigerian distribution companies suggests a gradual improvement in managing financial challenges in the sector.
Original Source: punchng.com
