Benin and Togo Incur $8.84 Million Debt to Nigeria for Electricity Services
Benin Republic and Togo owe Nigeria $8.84 million for electricity consumed in the fourth quarter of 2024. The Nigerian Electricity Regulatory Commission reports varying remittance efficiencies and highlights continued payments towards outstanding invoices. DisCos showed improved collection efficiency in the last quarter into 2024.
Benin Republic and Togo are reported to owe Nigeria $8.84 million for electricity consumed during the fourth quarter of 2024, according to The PUNCH. This information was revealed by the Nigerian Electricity Regulatory Commission (NERC) in a report detailing remittances made by both domestic and international bilateral customers as well as special customers for invoices issued by the Market Operator in the same quarter.
The report indicated that six international bilateral customers supplied by Nigerian Generation Companies (Gencos) remitted $5.21 million against a cumulative invoice of $14.05 million for services rendered in 2024/Q4, indicating a remittance performance of 37.08 percent. Specific amounts collected included: Paras-SBEE in Benin ($2.65 million), Paras-CEET in Benin ($1.64 million), Transcorp-SBEE (Ughelli) in Benin ($1.71 million out of $3.59 million), and Odukpani-CEET in Togo ($2.37 million).
The report highlighted that Mainstream-NIGELEC successfully paid the entire invoice of $2.60 million issued by the market operator. Moreover, domestic bilateral customers cumulatively paid N1.25 million against an invoice of N1.98 million, which represents a remittance performance of 63.36 percent for the final quarter of 2024. This indicates ongoing challenges in remittance among electrical consumers.
The report emphasized that some bilateral customers made payments towards previous outstanding invoices, totaling $0.98 million from Paras-CEET, $0.70 million from Paras-SBEE, and $1.30 million from Transcorp-SBEE. Additionally, domestic bilateral customers paid N135.81 million towards outstanding invoices, with notable contributions from NDPHC-Weewood ($21.17 million) and Trans-Amadi ($20.74 million).
Furthermore, the report noted that Ajaokuta Steel Co. Ltd and its host community did not make any payments towards their invoices, which totaled N1.27 billion (NBET) and ₦0.11 billion (MO) for 2024/Q4. This pattern of non-payment has led the NERC to request intervention from relevant authorities to resolve the issue.
In terms of revenue generation, electricity distribution companies (DisCos) in Nigeria collected N509.84 billion over the last three months of 2024, equating to 77.44 percent of the N658.40 billion billed to customers. This collection efficiency showed improvement from 74.55 percent recorded in the previous quarter (2024/Q3), marking an increase of 2.89 percentage points, indicating a positive trend in billing and collection efforts in the electricity sector.
In summary, Benin Republic and Togo owe Nigeria substantial debts for electricity consumption, amounting to $8.84 million. The NERC’s report signifies ongoing challenges in remittance, particularly highlighting some bilateral customers’ inability to clear outstanding invoices. The report further indicates an overall improvement in revenue collection efficiency among Nigeria’s electricity distribution companies, emphasizing the sector’s ongoing efforts to enhance financial stability and accountability.
Original Source: punchng.com
