Niger, Togo, and Benin owe Nigeria N9.41 billion in electricity fees for Q2 2024, as reported by NERC. This debt, equivalent to $5.79 million, reflects a notable payment improvement from previous quarters when no payments were recorded. Despite an invoice of $15.60 million issued for the same period, only $9.81 million was paid by these countries. Domestic consumers also fell short on payments during this quarter, emphasizing ongoing challenges in the regional electricity trade.
The Nigerian Electricity Regulatory Commission (NERC) has reported that the electricity debts of Benin, Niger, and Togo to Nigeria have reached N9.41 billion, equivalent to $5.79 million, for the second quarter of 2024. This information was disclosed in NERC’s latest quarterly report released over the weekend, revealing an improvement over the previous quarter when these countries made no payments. Under an international agreement, Nigeria supplies electricity to its neighboring nations, including Benin, Niger, and Togo, through companies such as Paras-SBEE and Transcorp-SBEE from Benin, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo. In the quarterly report, NERC indicated that despite a cumulative invoice of $15.60 million sent to the four international customers for Q2 2024, only $9.81 million was ultimately paid. This marked a notable increase from the first quarter of 2024, where international customers made no payments on the previous invoice of $14.19 million. Furthermore, the report highlighted that domestic customers similarly lagged in payments, remitting N695.4 million out of an invoiced N1.99 billion during the same period. This indicates ongoing challenges in the electricity payment landscape in Nigeria’s bilateral electricity trading agreements.
The issue of electricity debts owed by neighboring countries to Nigeria is significant within the context of regional energy trade. Nigeria has established international treaties to supply electricity to nations such as Benin, Niger, and Togo. Such arrangements are crucial for both economic cooperation and for Nigeria’s energy sector, which has been historically challenged by inadequate infrastructure and financial shortfalls. The situation underscores a pressing need for reliable payment mechanisms to ensure sustained electricity supply and investment in the energy sector. The recent quarterly reports from NERC serve as a critical monitoring tool to assess compliance and functionality within these agreements, as well as the financial health of Nigeria’s electricity sector.
In conclusion, the revelation by the Nigerian Electricity Regulatory Commission regarding the N9.41 billion owed by Benin, Togo, and Niger for electricity service highlights both a significant debt accumulation and a marginal improvement in payment behavior compared to the previous quarter. As bilateral energy agreements continue to evolve, the need for consistent payment structures remains pivotal. Enhanced compliance from international customers will be essential for the sustainability of Nigeria’s electricity exports and the overall health of its energy market.
Original Source: www.ripplesnigeria.com
