Benin and Togo owe Nigeria $8.84 million for electricity in Q4 2024, as per NERC’s report. Six international customers paid $5.21 million against $14.05 million billed, resulting in 37.08% remittance. Domestic customers paid N1.25 million of a N1.98 million invoice, showing a 63.36% remittance performance. Ajaokuta Steel Co. did not pay its invoices, leading to concerns. Overall, Nigerian DisCos collected 77.44% of billed amounts, an improvement from previous quarters.
The Benin Republic and Togo collectively owe Nigeria $8.84 million for electricity consumption during the fourth quarter of 2024, as reported by The PUNCH. This information was released by the Nigerian Electricity Regulatory Commission (NERC) in a report detailing payments from both domestic and international bilateral customers for the Market Operator’s invoices issued in that quarter.
According to the NERC report, the six international customers supplied by Gencos managed to pay $5.21 million out of a cumulative invoice of $14.05 million for service rendered, representing a remittance performance of 37.08%. Payments from individual companies include $2.65 million from Paras-SBEE, $1.64 million from Paras-CEET, and $1.71 million from Transcorp-SBEE (Ughelli), among others.
The report highlighted that Mainstream-NIGELEC was the only company to pay off its entire invoice of $2.60 million. Domestic bilateral customers made a cumulative payment of N1.25 million against a total invoice of N1.98 million issued, showing a remittance performance of 63.36%.
Additionally, past outstanding invoices from previous quarters saw payments from some bilateral customers, including $0.98 million, $0.70 million, and $1.30 million from Paras-CEET, Paras-SBEE, and Transcorp-SBEE, respectively. Domestic bilateral customers also contributed N135.81 million towards outstanding invoices.
The regulator reported that Ajaokuta Steel Co. Ltd and its host community did not make any payments on the N1.27 billion and ₦0.11 billion invoices issued in 2024/Q4, continuing a trend of non-payment which has raised concerns requiring government intervention.
Finally, for the last quarter of 2024, electricity distribution companies (DisCos) in Nigeria generated N509.84 billion, which is 77.44% of the N658.40 billion billed to customers. This collection efficiency marked an increase from 74.55% recorded in the preceding quarter, showing an improvement in financial recovery efforts within the sector.
The Benin Republic and Togo’s electricity debt of $8.84 million highlights ongoing challenges in the payment of electricity services within the region. NERC’s report reflects the complexities of financial transactions among bilateral customers and underscores the need for improved collection efficiency. The reported collection efficiency increase among Nigerian DisCos indicates a positive trend, but the non-payment by significant customers like Ajaokuta Steel raises concerns that require attention from authorities.
Original Source: punchng.com
