The Nigerian Electricity Regulatory Commission (NERC) has disclosed that international bilateral electricity customers in Benin Republic and Togo owe Nigeria $5.79 million for electricity consumed in the second quarter of 2024. This information was revealed in NERC’s latest report for Q2 2024, analyzed by our correspondent on Sunday.
According to the report, Nigeria issued a total invoice of $15.60 million to the international customers between April and June 2024, but only $9.81 million was remitted, leaving a balance of $5.79 million unpaid.
The key foreign entities consuming Nigerian electricity include Para-SBEE in Benin Republic ($1.23 million), Transcorp-SBEE in Benin, Mainstream-NIGELEC in Togo ($1.09 million), and Odukpani-CEET in Togo ($3.47 million).
The report noted that while Para-SBEE in Benin Republic paid 71.21% of the $4.29 million invoiced to them, Transcorp-SBEE in Benin remitted the full amount of $4.25 million. Mainstream-NIGELEC in Togo managed to remit 69.72% of its $3.59 million invoice, while Odukpani-CEET in Togo failed to remit any payment during this period.
Despite this, some progress was made in clearing previous debts. The NERC report highlighted that Transcorp-SBEE and Mainstream-NIGELEC have been making payments toward outstanding invoices from previous quarters.
In the first quarter of 2024, none of the four international bilateral customers had made any payments towards the cumulative $14.19 million invoice issued by Nigeria for services rendered, according to earlier reports. However, some customers have begun making payments on arrears.
Domestically, bilateral customers paid N1.30 billion against a cumulative invoice of N1.99 billion, reflecting a remittance rate of 65.07% for the second quarter of 2024.
Additionally, the Federal Government of Nigeria reduced its electricity subsidy obligations by N253.24 billion between Q1 and Q2 2024. The subsidy dropped from N633.30 billion, representing 90.57% of the total generation company (Genco) invoice, to N380.06 billion, or 52.51%, due to adjustments in tariffs charged to Band A customers.
This latest data underscores the challenges Nigeria faces with international electricity payments, particularly from its regional neighbors, as well as the evolving landscape of domestic electricity subsidies.
