Payment Performance of International Electricity Customers to Nigeria in 2023
A report by the Nigerian Electricity Regulatory Commission reveals that Niger, Benin, and Togo collectively paid $50.36 million for electricity in 2023, exhibiting a remittance performance of 94.04%. Domestic customers showed a payment rate of 84.94% with an outstanding balance of 15.06%. Subsequently, the Federal Government has mandated limitations on electricity supply to international customers.
A recent publication by the Nigerian Electricity Regulatory Commission (NERC) has provided insights into the financial transactions regarding electricity supplied to the international customers from Niger, Benin, and Togo during the year 2023. It reveals that these countries collectively remitted a sum of $50.36 million to the Nigerian Electricity Supply Industry (NESI), which reflects a commendable 94.04% remittance performance against the total invoicing of $53.55 million. The individual customers making these payments include: – Societe Beninoise d’Energie Electrique (Benin Republic) – Compagnie Energie Electrique du Togo (Togo) – Societe Nigerienne d’electricite (Niger) Additionally, the NERC report highlights that NESI is currently engaging with 19 active domestic bilateral customers. These customers received a total invoice amounting to N10,320.84 million, with actual payments amounting to N8,766.15 million, resulting in a remittance performance of 84.94%. Despite this significant contribution, a remaining balance of 15.06% underscores a gap in complete payment. In the preceding year, it was reported by the Federal Government that international consumers owed approximately $51.26 million for electricity previously exported to them. Consequently, the government mandated system operators within the Nigerian power sector to limit the electricity supply to international customers to no more than 6% of the total available grid generation per hour.
In the context of the Nigerian power sector, the regulation of electricity sales to both domestic and foreign customers is a crucial facet of energy management. The functioning of the Nigerian Electricity Regulatory Commission is instrumental in overseeing the monetary transactions and ensuring compliance with regulatory standards. The reported figures reflect ongoing efforts to bolster remittance from international customers while addressing domestic challenges in payment adequacy. The historical context of outstanding debts from international clients serves as a background for the current operational constraints imposed by the government.
In conclusion, the recent report by the NERC reveals a high level of remittance performance from Niger, Benin, and Togo for electricity payments in 2023, despite some gaps remaining in domestic customer payments. The measures taken by the Federal Government to restrict electricity supply to international customers are indicative of attempts to enhance financial sustainability within the power sector.
Original Source: politicsnigeria.com
