By Ajibola Olaide, JKNewsMedia Reporter
WEST AFRICAN Nations, Benin Republic and Togo have accumulated a combined debt of $8.84million for electricity consumed in the fourth quarter of 2024, according to a new report from the Nigerian Electricity Regulatory Commission (NERC).
The 2024 Q4 report, released by NERC’s market operator, revealed that six international bilateral customers, supplied by Nigerian electricity generation companies (Gencos), collectively paid only $5.21 million out of a total invoice of $14.05 million.
This translates to a remittance performance of just 37.08 percent.
▪️Breakdown of International Arrears indicate thus:
▪️The international electricity customers include:
▪️Paras-SBEE (Benin Republic): Paid $2.65 million.
▪️Paras-CEET (Benin Republic): Paid $1.64 million.
▪️Transcorp-SBEE (Ughelli, Benin Republic): Settled $1.71 million out of a $3.59 million invoice.
▪️Transcorp-SBEE (Afam 3, Benin Republic): Cleared $0.90 million from its $1.2 million bill.
▪️Odukpani-CEET (Togo): Still owes $2.37 million.
▪️Mainstream-NIGELEC (Niger): Fully paid its $2.60 million invoice.
While Mainstream-NIGELEC was the only international customer to meet its payment obligations in full, Benin’s and Togo’s outstanding debts continue to weigh on Nigeria’s electricity sector.
In addition to international customers, domestic bilateral customers within Nigeria remitted only N1.25 million against the N1.98 million invoice issued for services in the same quarter, reflecting a 63.36 percent remittance performance.
The report highlighted some overdue payments from previous quarters.
IParas-CEET, Paras-SBEE, and Transcorp-SBEE collectively paid $2.98 million towards outstanding debts, while domestic customers cleared N135.81 million in arrears.
The NERC also reported that Ajaokuta Steel Co. Ltd. and its host community failed to make any payments towards the N1.27 billion Nigerian Bulk Electricity Trading (NBET) invoice and the N0.11 billion Market Operator (MO) invoice issued to them for Q4 2024.
Despite challenges with international remittances, Nigeria’s electricity distribution companies (DisCos) generated N509.84 billion in the last quarter of 2024, achieving a collection efficiency of 77.44 percent.
NERC notes that this marked a 2.89 percentage point increase from the previous quarter’s performance.
The NERC noted that its report stresses the ongoing financial strain in Nigeria’s electricity sector, as unpaid debts from both domestic and international consumers continue to affect the liquidity of power suppliers.
