Niger, Togo, Benin Outstanding Electricity Payments to Nigeria…

The NERC has reported that Benin, Niger, and Togo owe Nigeria N9.41 billion ($5.79 million) for electricity supplied in Q2 2024, representing an improvement from previous quarters with no payments recorded. International firms including Paras-SBEE and Mainstream-NIGELEC owe significant amounts, contributing to ongoing challenges in the region’s energy payment compliance.

The Nigerian Electricity Regulatory Commission (NERC) has disclosed that the countries of Benin Republic, Niger, and Togo collectively owe Nigeria an outstanding electricity bill amounting to N9.41 billion, equivalent to approximately $5.79 million for the second quarter of the year 2024. This information was presented in the latest quarterly report released over the weekend by the commission. As part of an international treaty, Nigeria provides electricity to its neighboring nations, namely Benin Republic, Togo, and Niger, through various firms including Paras-SBEE and Transcorp-SBEE from Benin, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo. Despite this debt, it is notable that there has been an increase in payments from these international customers, a significant improvement from the first quarter when no payments were recorded. In the report for the first quarter of 2024, it was highlighted that none of the four international bilateral customers had made any payments towards an outstanding invoice totalling $14.19 million for electricity services provided during the same period. Additionally, domestic bilateral consumers also failed to meet their payment obligations, with none paying against a cumulative invoice of N1.86 billion. In terms of recent transactions, during the second quarter, the NERC documented that the four international customers collectively made a cumulative payment of $9.81 million against an invoice of $15.60 million. Furthermore, domestic bilateral customers remitted a total of ₦1,295.90 million out of a cumulative billing of ₦1,991.30 million for the same quarter. The overall developments show an ongoing effort towards improving electricity payment compliance among both international and domestic customers.

The regulation and monitoring of electricity distribution and payments in Nigeria are overseen by the Nigerian Electricity Regulatory Commission (NERC). As part of an international arrangement, Nigeria exports electricity to neighboring countries—Benin, Togo, and Niger—under agreements aimed at expanding regional energy cooperation. The financial obligations incurred by these nations have historically posed challenges, with issues regarding timely payments being common. The latest report from the NERC sheds light on the current state of payments to Nigeria’s electricity supply, indicating gradual improvements since previous quarters where there were significant payment deficiencies.

In summary, the Nigerian Electricity Regulatory Commission has reported that countries such as Benin, Niger, and Togo owe Nigeria a total of N9.41 billion in unpaid electricity bills for the second quarter of 2024. This marks a notable turnaround from the first quarter, wherein all international customers failed to remit payments. Although there are still outstanding debts, the recent payments of $9.81 million signify progress towards addressing these financial obligations. The ongoing challenge remains for both international and domestic consumers to maintain timely payments for services rendered.

Original Source: www.ripplesnigeria.com