The latest quarterly report from the Nigerian Electricity Regulatory Commission (NERC) reveals that neighboring Benin Republic and Togo owe Nigeria a combined $8.84 million for electricity consumed in the fourth quarter of 2024. This is just the latest chapter in an ongoing struggle to secure full remittances from international electricity consumers, a problem that has persisted for years. According to the NERC report, international customers—including those in Benin and Togo—paid only $5.21 million out of a total $14.05 million billed during the final quarter of 2024.
This represents a remittance performance of just 37.08 percent, leaving Nigeria’s Electricity Market grappling with significant unpaid debts. The breakdown of payments shows that Paras-SBEE in Benin Republic paid $2.65 million, while Paras-CEET, also in Benin, paid $1.64 million. Transcorp-SBEE (Ughelli) in Benin made a partial payment of $1.71 million out of its $3.59 million invoice, and Transcorp-SBEE (Afam 3) paid $0.90 million out of $1.2 million. Whereas, Odukpani-CEET in Togo remains one of the major debtors, still owing $2.37 million.
Unpaid foreign electricity bills have been a long standing issue.
Among all international customers, only Mainstream-NIGELEC settled its full bill of $2.60 million. NERC also noted that some international customers made partial payments toward outstanding invoices from previous quarters. Paras-CEET paid an additional $0.98 million, Paras-SBEE settled $0.7 million, and Transcorp-SBEE contributed $1.3 million to clear past debts. Despite facing its own energy supply challenges, Nigeria continues to provide electricity to neighboring Benin Republic and Togo, yet payments for these services remain inconsistent.
Moreover, the issue of unpaid electricity bills has been a longstanding concern. The six (6) international bilateral clients that GenCos in the NESI supply paid $6.49 million in the third quarter of 2024 towards a $12.19 million cumulative invoice that the MO issued for services provided in the third quarter of 2024, which translates to a 53.24% remittance performance. In the second quarter of 2024, International bilateral electricity users in Togo and the Benin Republic owe Nigeria $5.79 million for electricity used.
NERC frustrated as unpaid bills continue to mount.
It was also reported that between April and June 2024, Nigeria sent out $15.60 million in invoices to foreign clients, but only $9.81 million of those amounts were paid out, leaving $5.79 million unpaid, according to the report. What’s even more worrisome is the data from the first quarter of 2024, which revealed that four international bilateral electricity customers, including those in Benin and Togo, failed to remit a single dollar of the $14.19 million owed for electricity supplied.
Looking back at 2023, the pattern of non-payment was much more concerning. International consumers, including Benin and Togo, failed to remit about $51.26 million for Nigerian-supplied electricity during that year. Breaking it down, international consumers failed to remit $16.11 million in the first quarter of 2023, $11.97 million in the second quarter, $11.16 million in the third quarter, and $12.02 million in the fourth quarter, indicating a constant accumulation of debt throughout the year. NERC has become increasingly frustrated with the persisting problem of non-payment, referring to it as “payment indiscipline.”
Related Article: Benin, Togo owe Nigeria $5.79m power debt
While efforts to improve Revenue collection within Nigeria are showing progress, the same cannot be said for international payments, where remittance rates remain dismally low. Despite these financial burdens, Nigeria continues to honor its electricity supply agreements with Benin and Togo, partly due to diplomatic considerations and regional energy cooperation. This arrangement aims to promote electricity integration and stability across the region but has left Nigeria shouldering significant financial risks. The growing arrears raise serious concerns about the Sustainability of this arrangement.