Benin, Togo’s Electricity Debt to Nigeria Reaches $5.79 Million
International electricity customers in Benin Republic and Togo owe Nigeria $5.79 million for electricity consumed in the second quarter of 2024, reflecting a remittance performance of 62.88 percent. Government subsidy obligations have also significantly decreased, impacting overall tariff adjustments and revenue collection efficiencies of electricity distribution companies.
International bilateral electricity customers from the Benin Republic and Togo currently have an outstanding debt of $5.79 million to Nigeria for electricity consumption in the second quarter of 2024, as reported by the Nigerian Electricity Regulatory Commission (NERC). This information is derived from the Commission’s latest report analyzed by our correspondent on Sunday. During the period from April to June, a total invoice of $15.60 million was issued by the market operator, with customers remitting $9.81 million, leading to a remittance performance of 62.88 percent. The companies involved include Para-SBEE in the Benin Republic, which paid $1.23 million; Transcorp-SBEE in Benin, which fully paid $4.25 million; Mainstream-NIGELEC in Togo with a remittance of $1.09 million; and Odukpani-CEET in Togo, which registered no payments during this period. Notably, none of these customers made payments in the first quarter of 2024 on a cumulative invoice of $14.19 million issued by the market operator. Additionally, the report highlights that some international and domestic bilateral customers have cleared outstanding invoices from prior quarters. Cumulatively, international bilateral customers contributed a total of $16.65 million towards settling previous debts. Conversely, domestic bilateral customers made a payment of 1.30 billion Naira against an invoice of 1.99 billion Naira, achieving a remittance performance of 65.07 percent. In terms of subsidies, the Federal Government has seen a significant reduction in its subsidy obligations, decreasing from 633.30 billion Naira (90.57 percent of the total Generation Company invoice) in the first quarter to 380.06 billion Naira (52.51 percent of the total) in the second quarter. This adjustment results from policy changes regarding tariff reviews for certain customer bands. Overall, the distribution companies (Discos) collected a total revenue of 431.16 billion Naira in the second quarter, leading to a collection efficiency of 79.31 percent, slightly higher than the 79.11 percent recorded in the first quarter. Among the various Discos, Ikeja and Eko recorded the highest efficiencies at 94.67 percent and 88.03 percent, respectively, while Yola Disco recorded the lowest efficiency at 55.67 percent.
This article outlines the financial interactions between Nigeria and its international electricity customers in the Benin Republic and Togo. The concerns revolve around significant debts owed by these countries for electricity consumed, which has implications for Nigeria’s electricity generation sector. The statistics provided are part of broader financial oversight conducted by the Nigerian Electricity Regulatory Commission, which aims to enhance the efficiency and accountability of electricity distribution in Nigeria. Additionally, the impact of government subsidy policies on electricity tariffs and revenue generation is an important aspect of the report.
In summary, the international bilateral customers in the Benin Republic and Togo owe Nigeria a total of $5.79 million for electricity consumed in the second quarter of 2024. The report highlights improvements in remittance performances compared to previous quarters and indicates significant changes in government subsidy obligations for electricity tariffs. Collection efficiency among distribution companies has also shown a slight increase, illustrating ongoing efforts to enhance financial operations within the Nigerian electricity market.
Original Source: punchng.com
