The Benin Republic and Togo owe Nigeria a total of $8.84 million for electricity consumed in Q4 2024, according to the NERC. The report shows that international customers paid only 37.08% of their invoices, while domestic customers achieved 63.36%. Overall, Nigerian electricity distributors increased their collection efficiency to 77.44% in comparison to the previous quarter.
The Benin Republic and Togo are reported to owe Nigeria $8.84 million for electricity consumed in the fourth quarter of 2024, as revealed by The PUNCH. This information was presented in a report by the Nigerian Electricity Regulatory Commission (NERC) that outlined remittances from both domestic and international bilateral customers for invoices issued during this period.
During the fourth quarter of 2024, six international bilateral customers received power supply from Generation Companies (Gencos) in Nigeria, collectively making payments of $5.21 million against a cumulative invoice of $14.05 million, leading to a remittance performance of 37.08 percent. Notable payments were made by Paras-SBEE and Paras-CEET in Benin, as well as Transcorp-SBEE (Ughelli) and Transcorp-SBEE (Afam 3).
The report highlighted that Odukpani-CEET in Togo has an outstanding debt of $2.37 million, while only Mainstream-NIGELEC settled its entire $2.60 million invoice issued by the market operator. It was also noted that domestic bilateral customers made a cumulative payment of N1.25 million against a total invoice of N1.98 million, achieving a remittance performance of 63.36 percent.
In addition to current payments, certain bilateral customers, such as Paras-CEET and Transcorp-SBEE, made payments for outstanding invoices from previous quarters totaling $2.98 million. Domestic customers also contributed with N135.81 million towards older debts. However, Ajaokuta Steel Co. Ltd and associated communities did not make any payments towards substantial outstanding invoices received in 2024/Q4, a trend that has raised concerns.
The NERC reported that electricity distribution companies (DisCos) in Nigeria generated N509.84 billion in revenue during the last three months of 2024, which is 77.44 percent of the N658.40 billion billed to customers in this quarter. This collection efficiency marks an improvement over the previous quarter, with an increase of 2.89 percentage points compared to 74.55 percent in 2024/Q3.
In conclusion, the debts owed by the Benin Republic and Togo to Nigeria for electricity reflect broader challenges within the regional electricity market. The NERC’s report illustrates the payments made by bilateral customers, the collection efficiencies of electricity distributors, and continued issues with long-standing debtors like Ajaokuta Steel Co. Ltd. It highlights the need for sustained efforts to improve payment compliance in the sector.
Original Source: punchng.com
