Benin Republic and Togo owe Nigeria $8.84 million for electricity in Q4 2024. The NERC report indicates a remittance performance of 37.08% from international customers and 63.36% from domestic customers. Ajaokuta Steel Co. Ltd continues to default on payments. Overall, the electricity distribution companies reported a collection efficiency of 77.44% for Q4 2024, an improvement from the previous quarter.
Benin Republic and Togo owe Nigeria a total of $8.84 million for electricity consumed in the fourth quarter of 2024, as reported by The PUNCH. The Nigerian Electricity Regulatory Commission (NERC) disclosed the outstanding debt in a report concerning the payments made by both domestic and international bilateral customers as well as special customers during this period.
According to the report, six international bilateral customers supplied by Generation Companies (Gencos) in Nigeria contributed a payment of $5.21 million against a total invoice of $14.05 million issued for the services rendered. This resulted in a remittance performance of only 37.08 percent. Key payments included $2.65 million by Paras-SBEE, $1.64 million by Paras-CEET, and $1.71 million by Transcorp-SBEE (Ughelli) out of its $3.59 million invoice, among others.
The report also highlighted that Mainstream-NIGELEC was the only customer that completed its payment fully, settling the $2.60 million invoice. Domestic bilateral customers collectively paid N1.25 million against an invoice of N1.98 million, representing a remittance performance of 63.36 percent during this quarter. Some customers made additional payments covering prior outstanding invoices, including notable contributions from Paras-CEET and Transcorp-SBEE for amounts totaling nearly $3 million.
The NERC pointed out that no payments were received from Ajaokuta Steel Co. Ltd or its host community concerning the hefty outstanding invoices totaling N1.27 billion for NBET and ₦0.11 billion for MO. This situation reflects a persistent trend of non-payment from this particular customer, prompting the commission to urge intervention from relevant federal authorities.
Furthermore, electricity distribution companies (DisCos) in Nigeria recorded a revenue of N509.84 billion over the last three months of 2024. This amount was collected from the total of N658.40 billion that had been billed to customers, yielding a collection efficiency of 77.44 percent. This reflects an improvement over the third quarter of 2024, where the collection efficiency was recorded at 74.55 percent, highlighting a positive trend in revenue collection.
In conclusion, the article emphasizes the significant electricity debt owed by Benin Republic and Togo to Nigeria, amounting to $8.84 million. The report from the NERC illustrates the challenges faced by both international and domestic customers in meeting their financial obligations. Additionally, the increase in collection efficiency among Nigeria’s electricity distribution companies indicates a slight improvement in revenue collection compared to the previous quarter, although persistent non-payment issues remain concerning certain customers.
Original Source: punchng.com
