NERC warned that the persistent non-payment by some customers could result in their total disconnection from the national grid.
Abuja, Nigeria -The Nigerian Electricity Regulatory Commission (NERC) has revealed that Niger, Togo, and Benin owe Nigeria N9.41 billion for electricity supplied in the second quarter of 2024.
This debt is equivalent to $5.79 million, based on the official exchange rate of N1,626.32 to the dollar as of October 10, 2024.
According to NERC’s latest quarterly report, the Market Operator (MO) issued invoices totaling $15.60 million to four firms operating in the three neighboring countries during the quarter. However, only $9.81 million of that sum was paid.
The firms involved include Paras-SBEE and Transcorp-SBEE, both from Benin Republic; Mainstream-NIGELEC from Niger; and Odukpani-CEET from Togo. Nigeria supplies electricity to these countries under an international treaty.
The report also highlighted the shortfall in payments by domestic bilateral customers. Out of a total invoice of N1.99 billion for the quarter, only N1.29 billion was paid, leaving a balance of N695.4 million.
The regulator further stated that some customers, both international and domestic, made payments during Q2 2024 for outstanding bills from previous quarters. International customers paid a cumulative $16.65 million toward arrears, with Transcorp-SBEE and Mainstream-NIGELEC settling all outstanding invoices. On the domestic front, a total of N1.31 billion was received as payments towards overdue bills, with Mainstream Energy Solutions also clearing its outstanding debts.
NERC also highlighted the non-payment issues with Ajaokuta Steel Company Limited and its host community, which failed to make any payments on the N1.39 billion invoice from the Nigerian Bulk Electricity Trading (NBET) company and N0.11 billion from the Market Operator.
The commission noted that this continues a long-standing trend of non-payment and has sought intervention from the Federal Government of Nigeria (FGN) on the matter.
NERC warned that the persistent non-payment by some customers could result in their total disconnection from the national grid.
Join our Channel...