Benin Republic and Togo owe Nigeria $5.79 million for electricity consumed in Q2 2024, as reported by the NERC. Out of a total invoice of $15.60 million, only $9.81 million was remitted. The international customers achieved a 62.88% remittance performance. Domestic customers also demonstrated a collection efficiency of 65.07%. Overall, the NERC highlighted reductions in the Federal Government’s electricity subsidy obligations and improved collection efficiency among distribution companies.
The Nigerian Electricity Regulatory Commission (NERC) has reported that Benin Republic and Togo collectively owe a debt of $5.79 million to Nigeria for electricity consumed during the second quarter of 2024. In its latest report, the NERC outlined that out of a total invoice of $15.60 million issued to international bilateral electricity customers between April and June 2024, $9.81 million was remitted by these customers. Specifically, the electricity companies in Benin Republic and Togo that are purchasing power from Nigeria include: Para-SBEE in Benin Republic ($1.23 million), Transcorp-SBEE in Benin ($4.25 million), Mainstream-NIGELEC in Togo ($3.59 million), and Odukpani-CEET in Togo ($3.47 million). Key remittance highlights indicate that Para-SBEE paid 71.21% of its billed amount, while Transcorp-SBEE paid in full. Conversely, Odukpani-CEET did not make any payments during the reported period. It is noteworthy that in the first quarter of 2024, none of these international clients paid against a cumulative invoice of $14.19 million. Furthermore, the report indicated that some bilateral customers settled outstanding invoices from previous quarters, totaling $16.65 million in payments. A combined analysis showed that the international customers achieved a remittance performance of 62.88%, having made payments against the cumulative invoice of $15.60 million for the second quarter. In terms of domestic customers, NERC reported that they remitted approximately 65.07% of their owed amount, totaling N1.30 billion against the N1.99 billion invoiced for the same quarter. Significant reductions in the Federal Government’s electricity subsidy obligation were also highlighted, decreasing from N633.30 billion in the first quarter to N380.06 billion in the second quarter, attributed to tariff reviews for different customer bands, whilst maintaining static rates for others. Collection efficiency among distribution companies (Discos) exhibited a slight increase, rising to 79.31% from 79.11% in the previous quarter, with Ikeja and Eko Discos showcasing the highest collection efficiencies at 94.67% and 88.03%, respectively. Yola Disco, however, recorded the lowest efficiency at 55.67%.
The Nigerian Electricity Regulatory Commission (NERC) plays a critical role in overseeing and regulating the country’s electricity sector, including the billing and collection of payments from domestic and international electricity customers. This context is vital as it provides insight into the workings of Nigeria’s power distribution agreements, especially with neighboring countries like Benin Republic and Togo. The ongoing debts from these international customers underscore the challenges faced in ensuring timely payments for electricity supplied while highlighting broader economic implications related to energy consumption and subsidy obligations.
In conclusion, the NERC’s report indicates a significant unpaid electricity debt from international customers in Benin and Togo amounting to $5.79 million for Q2 2024. Despite improvements in payment performance from previous quarters, significant gaps remain in collection efficacy. The report also shows a general rise in collection efficiency among Nigerian Discos, reflecting better management of billing and subsidy reductions by the Federal Government. The financial dynamics between these neighboring countries further illustrate the complexities involved in international energy agreements and economic exchanges.
Original Source: punchng.com
