In 2023, Niger, Benin, and Togo collectively paid Nigeria $50.36 million for electricity, reflecting a 94.04% remittance rate against a $53.55 million invoiced amount. Domestic customers showed an 84.94% remittance performance, highlighting ongoing challenges in the sector.
A recent publication from the Nigerian Electricity Regulatory Commission (NERC) has provided comprehensive insight into the payments made by international bilateral customers, specifically from Niger, Benin, and Togo, to the Nigerian Electricity Supply Industry (NESI) for the year 2023. The report indicates that these three countries contributed a total payment of $50.36 million, reflecting a remarkable remittance performance of 94.04%. The details of these transactions are as follows: – Total Invoice Amount: $53.55 million – Total Amount Paid: $50.36 million – Remittance Rate: 94.04% The entities responsible for these payments include: – Societe Beninoise d’Energie Electrique (Benin Republic) – Compagnie Energie Electrique du Togo (Togo) – Societe Nigerienne d’électricité (Niger) In addition to these international customers, the NERC report highlights that NESI engages with 19 active domestic bilateral customers. These domestic clients received an aggregate invoice totaling N10,320.84 million but managed to remit N8,766.15 million, translating to a remittance performance of 84.94%. This statistic underscores a noteworthy shortfall, with 15.06% of the invoiced amount yet to be settled. Notably, last year, the Federal Government disclosed that international electricity consumers owed Nigeria approximately $51.26 million for electricity supplies. This prompted a directive for system operators to limit the export of electricity to no more than 6% of the total grid generation available per hour to these international off-takers.
The Nigerian Electricity Supply Industry operates under various agreements with both domestic and international customers. International customers, particularly from neighboring countries such as Niger, Benin, and Togo, are crucial for Nigeria’s electricity export revenues. However, challenges have historically plagued the remittance process, prompting the need for government intervention to ensure compliance. The current data from NERC sheds light on the current fiscal performance of these international customers and provides insight into the broader context of Nigeria’s electricity supply dynamics.
In summary, the recent analysis shared by the Nigerian Electricity Regulatory Commission reveals significant financial transactions between Nigeria and its neighboring countries regarding electricity supply. With a total payment of $50.36 million from Niger, Benin, and Togo, the remittance performance exemplifies the importance of these international relationships for Nigeria’s economy. Conversely, the outstanding balance from domestic customers signals a need for improved compliance and collection efforts within Nigeria’s electricity market.
Original Source: politicsnigeria.com
