Report Shows Togo, Benin, Others Owe Nigeria Over $51m Electricity Debt, NERC gives order

• The federal government is not happy that several countries, including Togo and Benin, have huge outstanding debts
• These countries owe Nigeria over $51 million, and this has become a challenge for the government
• A breakdown of the debt has been provided in data released by the Nigerian Electricity Regulatory Commission (NERC)

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends

New data shows that international electricity customers owe the Nigeria government over $51 million in power debt.

Nigeria exports electricity to various countries, including Niger, Togo, and the Republic of Benin and based on strategic agreements with neighbouring countries.

According to data from the Nigerian Electricity Regulatory Commission (NERC), international consumers failed to remit $16.11 million, $11.97 million, $11.16 million, and $12.02 million to Nigeria for the electricity exported to them in the first, second, third, and fourth quarters of 2023, respectively.

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Punch also reports that bilateral power consumers did not remit about N7.61bn to the Nigerian power sector in 2023.

Bilateral power contracts in Nigeria are written agreements in which one party supplies power to the other in exchange for payment.

NERC introduced bilateral power purchase agreements (PPAs) to allow power companies to sell directly to distribution companies (DisCos).

Breakdown of the payments

NERC said bilateral consumers did not pay the Nigerian government N827 million, N2.03 million, N2.8 billion, and N1.95 billion for electricity sold to them in the first, second, third, and fourth quarters 2023.

NERC, in its reports, noted:

"None of the under-listed international customers made any payment against the cumulative $16.11m invoice issued to them in 2023/Q1: Paras-SBEE ($3.46m), Transcorp-SBEE ($3.85m), Mainstream-NIGELEC ($5.48m) and Odukpani-CEET ($3.32m)."

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For bilateral customers, the power sector regulator said:

“Out of N842.38m invoice issued by MO to all the eight bilateral customers in the NESI (Nigeria Electricity Supply Industry), only North South/Star Pipe made a remittance of N15.38m against its invoice of N24.69m.”

FG cuts down electricity supply to Togo, 2 other countries

In a related development, the Nigerian government has mandated power-generating companies to reduce electricity supply to neighbouring countries.

NERC gave the order following high indebtedness by the three countries.

The directives mandated system operators to limit power generation to Togo, Benin Republic, and Niger to six per cent pending payment of debts.

Source: Legit.ng