Benin and Togo Incur $8.84 Million Electricity Debt to Nigeria
Benin Republic and Togo are in debt to Nigeria for $8.84 million in electricity consumption for Q4 2024. NERC reported a 37.08% remittance performance from bilateral international customers, with only Mainstream-NIGELEC fully paying its invoice. Additionally, the domestic customers achieved a 63.36% payment rate. However, Ajaokuta Steel Co. Ltd has failed to make payments on significant outstanding invoices, continuing a concerning trend.
According to a recent report by the Nigerian Electricity Regulatory Commission (NERC), the Benin Republic and Togo owe Nigeria a total of $8.84 million for electricity consumed in the fourth quarter of 2024. The report highlights the remittances from both domestic and international bilateral customers and special customers for services rendered during this period.
The report reveals that six international bilateral customers, supplied by Gencos in the Nigerian electricity supply industry, made a collective payment of $5.21 million against a cumulative invoice of $14.05 million, achieving a remittance performance of 37.08 percent. In detail, payments by these customers included $2.65 million from Paras-SBEE in Benin Republic, $1.64 million from Paras-CEET in Benin, $1.71 million from Transcorp-SBEE (Ughelli), and $0.90 million from Transcorp-SBEE (Afam 3), while Odukpani-CEET in Togo owes $2.37 million.
Only one customer, Mainstream-NIGELEC, fulfilled its entire invoice of $2.60 million as issued by the market operator. Additionally, domestic bilateral customers paid a total of N1.25 million against an invoice of N1.98 million, yielding a remittance performance of 63.36 percent.
It is also noted that certain bilateral customers made payments during this quarter for outdated invoices. Specifically, Paras-CEET, Pars-SBEE, and Transcorp-SBEE contributed $0.98 million, $0.7 million, and $1.3 million, respectively, towards previous outstanding amounts. Domestic customers collectively contributed N135.81 million towards their overdue invoices with various breakdowns provided.
The NERC indicated that Ajaokuta Steel Co. Ltd and its host community failed to make payments towards their significant outstanding invoices totaling N1.27 billion from NBET and ₦0.11 billion from MO during 2024/Q4. This continued non-payment by Ajaokuta Steel is a pressing concern that has been communicated to the relevant federal authorities for intervention.
Furthermore, NERC reported that electricity distribution companies (DisCos) in Nigeria collectively generated N509.84 billion in Q4 2024, which accounted for 77.44 percent of the N658.40 billion billed to customers. This represents an increase in collection efficiency compared to the previous quarter, which saw a collection efficiency of 74.55 percent, reflecting a positive trend in revenue collection in the electricity sector.
In conclusion, Benin Republic and Togo owe Nigeria $8.84 million for electricity consumed in the fourth quarter of 2024, as reported by NERC. Despite some payments, the overall remittance performance from international customers remains low, and the ongoing non-payment by Ajaokuta Steel is a concern. However, there has been an improvement in the collection efficiency of Nigerian electricity distribution companies, indicating better performance compared to prior quarters.
Original Source: punchng.com
