According to a recent report from the Nigerian Electricity Regulatory Commission (NERC), the Benin Republic and Togo currently owe Nigeria a total of $5.79 million for electricity consumed during the second quarter (Q2) of 2024. This debt reflects the ongoing challenges in the international power supply agreements between Nigeria and its neighboring countries.
In its comprehensive second-quarter report for 2024, the NERC revealed that international customers, including both Benin and Togo, made payments totaling $9.81 million between April and June 2024. However, this amount falls short of the total invoiced amount of $15.60 million for electricity consumed during that period, indicating a significant gap in remittances from these countries.
The specific companies involved in these transactions include Para-SBEE and Transcorp-SBEE from the Benin Republic, as well as Mainstream-NIGELEC and Odukpani-CEET from Togo. The report highlights that Para-SBEE in the Benin Republic managed to remit 71.21 percent of the $4.29 million it was charged. On the other hand, Transcorp-SBEE in Benin successfully paid 100 percent of its invoice, amounting to $4.25 million.
In Togo, Mainstream-NIGELEC paid only 69.72 percent of its invoiced amount of $3.59 million, while Odukpani-CEET reported no payments made during the reviewed period. This situation starkly contrasts with the first quarter of 2024, when none of the four international customers made any payments toward the total invoiced amount of $14.19 million for power consumed.
The NERC’s report notes that, overall, the international bilateral customers paid a total of $16.65 million in the second quarter of 2024. It also pointed out that “Transcorp-SBEE and Mainstream-NIGELEC have made payments toward all outstanding invoices from previous quarters.” This statement reflects a positive development in the ongoing efforts to settle past dues, which have been a persistent issue.
The report further details that the four international bilateral customers supplied by Generation Companies (Gencos) in the Nigerian Electricity Supply Industry (NESI) collectively made a payment of $9.81 million against the cumulative invoice of $15.60 million issued by the Market Operator (MO) for services rendered in Q2 2024. This translates to a remittance performance of 62.88 percent, indicating that while payments are being made, there is still a considerable amount outstanding.
On the domestic front, the NERC reported that domestic customers paid a total of N1.30 billion in the second quarter, which contrasts with the cumulative invoice of N1.99 billion issued to them by the MO. This reflects a remittance performance of 65.07 percent. Additionally, the report notes that approximately N1.30 billion was received from domestic bilateral customers for previous outstanding bills.
Regarding electricity subsidies, the federal government’s subsidy obligation saw a significant reduction from N633.30 billion to N380.06 billion between the first and second quarters of 2024. The NERC explained that “the significant decrease in the subsidy obligation of the Federal Government is a result of the policy directive of the government to implement reviews of tariffs charged to Band A customers, while the tariffs for Band B-E customers remain frozen at the rates payable since December 2022.” This adjustment in tariffs aims to stabilize the financial obligations associated with electricity provision and ensure more sustainable practices within the sector.
