Data from the Nigerian Electricity Regulatory Commission (NERC) report for Q2 2024 has revealed that international bilateral electricity consumers in Benin Republic and Togo owe Nigeria $5.79 million for electricity consumed in the second quarter of 2024. The report indicates that between April and June 2024, Nigeria sent out a total of $15.60 million in invoices to foreign clients; however, only $9.81 million of those amounts were paid out, leaving $5.79 million outstanding. The main foreign users of Nigerian power are Odukpani-CEET ($3.47 million), Mainstream-NIGELEC ($1.09 million), Para-SBEE in Benin Republic ($1.23 million), and Transcorp-SBEE in Benin.
Transcorp-SBEE in Benin remitted the entire $4.25 million, while Para-SBEE in the Benin Republic only paid 71.21% of the $4.29 million that was invoiced to them, according to the report. While Odukpani-CEET in Togo did not make any payments during this time, Mainstream-NIGELEC in Togo was able to remit 69.72% of their $3.59 million invoice. Despite this, there was some progress in paying off prior loans. The NERC report made clear that Mainstream-NIGELEC and Transcorp-SBEE had been paying towards overdue debts from prior quarters.
Int’l bilateral electricity customers collectively owed $14m.
In the first quarter of 2024, Nigeria did not receive any payments from the four international bilateral electricity customers, who collectively owed $14.19 million for electricity supplied. Specifically, Benin’s Para-SBEE and Transcorp-SBEE accounted for debts of $3.15 million and $4.46 million, respectively, while Togo’s Mainstream-NIGELEC owed $1.21 million, and Odukpani-CEET $5.36 million. Despite the significant outstanding amounts, none of these entities made any remittances toward settling their obligations during this period, reflecting a persistent challenge in payment compliance across the board.
Apart from the foreign debt, NERC also reported that local bilateral clients in Nigeria failed to remit any money toward the $1.88 million total invoice for services performed in the first quarter of 2024. Nonetheless, the report noted that certain payments for unpaid Market Operator invoices from prior quarters were made by both domestic and foreign clients during the same quarter. In the second quarter of 2024, bilateral clients paid ₦1.30 billion domestically towards an overall invoice of ₦1.99 billion, indicating a remittance rate of 65.07%.
Both countries owed substantial amounts in previous years.
The Nigerian Electricity Regulatory Commission expressed frustration with what it referred to as “payment indiscipline” among both local and international customers, stressing the need for the Market Operator (a division of the Transmission Company of Nigeria responsible for handling exports) to take stricter measures to ensure compliance. The debt problem is not new, as Benin and Togo also owed substantial amounts in previous years. In 2023, for instance, international customers (including these two countries) had failed to remit around $51.26 million for the electricity supplied by Nigeria.
To break it down, international consumers failed to remit $16.11 million in the first quarter, $11.97 million in the second quarter, $11.16 million in the third quarter, and $12.02 million in the fourth quarter of 2023 for the electricity exported to them. According to data from the Federal Government, the bilateral power customers in Nigeria did not remit approximately ₦7.61 billion to the country’s power industry in the previous year. The most recent data highlights Nigeria’s difficulties receiving foreign power payments, especially from its neighbors in the area, and the changing nature of domestic electricity subsidies.
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However, Nigeria continues to provide electricity to both nations despite the debt issues due to past agreements and frameworks for regional energy cooperation through the West African Power Pool (WAPP). There have been efforts from both countries to settle their debts. Nonetheless, the problem still persists, partly because of the region’s economic difficulties and ineffective electricity management. Although the circumstances surrounding the debt for electricity between Nigeria, Benin, and Togo may have changed, the problem persist in general.