The Nigerian Electricity Regulatory Commission (NERC) has disclosed that Niger, Togo and Benin Republic collectively owe Nigeria $16.11 million for electricity supply in the first quarter (Q1) of 2023.
Based on the Central Bank of Nigeria’s (CBN) exchange rate as of August 8, 2023, which is $/768.767, the three international customers owe the country N12.38 billion.
Nigeria sells electricity to neighbouring countries like Benin Republic, Togo, and Niger under an international treaty, through four firms Paras-SBEE and Transcorp-SBEE both from the Benin Republic; Mainstream-NIGELEC from Niger; and Odukpani-CEET from Togo.
“None of the underlisted international customers made any payment against the cumulative $16.11 million invoice issued to them in Q1 2023; Paras-SBEE ($3.46 million), Transcorp-SBEE ($3.85 million), Mainstream-NIGELEC ($5.48 million) and Odukpani-CEET ($3.32 million),” the NERC’s 2023 Q1 report read.
According to the report, the market operations (MO) issued invoices to all the eight bilateral customers in the NESI in 2023/Q1 which amounted to N842.38 million and during the quarter, only North-South/Star Pipe made a remittance of ₦15.38 million against an invoice of N24.69 million issued to them.
“This means that for the period, the cumulative remittance performance of bilateral customers was 1.83 per cent.”
The NERC explained that the non-remittance by international and bilateral customers continues a trend that should prompt the MO to invoke the provision of the market rules to curtail the payment indiscipline being exhibited by the various market participants.
The power sector regulator also said under the special customers’ arrangement, Ajaokuta Steel Company Limited and the host community did not make any payment towards the N0.38 billion (NBET) and N0.08 billion (MO) invoices received in Q1 2023.
“As of March 2023, Ajaokuta Steel Company Limited had a total outstanding debt of N26,715,043,905.73 to NBET and N1,739,966,505.69 to the MO. NERC has communicated this longstanding debt to the federal government for interventions
“This continues a longstanding trend of non-payment by this customer and the commission has communicated the need for intervention on this issue to the relevant FGN ministries,” it added.
