Benin Republic and Togo owe Nigeria $8.84 million for electricity in Q4 2024. NERC reports a remittance performance of 37.08% from international customers, with domestic customers at 63.36%. Payment issues persist, notably with Ajaokuta Steel Co. Ltd. However, revenue collection by Nigerian DisCos shows improvement, reaching 77.44% efficiency.
Benin Republic and Togo owe Nigeria $8.84 million for electricity consumed in the fourth quarter of 2024, as reported by The PUNCH. The Nigerian Electricity Regulatory Commission (NERC) released findings on payments made by both domestic and international bilateral customers related to electricity services during this quarter.
The report states that six international bilateral customers supplied by Generation Companies (Gencos) paid only $5.21 million of the cumulative $14.05 million invoice, resulting in a remittance performance of 37.08%. Payments from individual companies include: Paras-SBEE in Benin, $2.65 million; Paras-CEET in Benin, $1.64 million; Transcorp-SBEE (Ughelli) in Benin, $1.71 million from a $3.59 million invoice; Transcorp-SBEE (Afam 3), $0.90 million from a $1.2 million invoice; and Odukpani-CEET in Togo, which owes $2.37 million.
Only Mainstream-NIGELEC fully paid its invoice of $2.60 million. Domestic bilateral customers collectively paid N1.25 million against a total invoice of N1.98 million, equating to a remittance performance of 63.36% for the same period. Some international customers also made payments on outstanding invoices from previous quarters, totaling approximately $2.98 million.
For instance, Paras-CEET, Paras-SBEE, and Transcorp-SBEE contributed $0.98 million, $0.7 million, and $1.3 million respectively towards these past dues. Additionally, the Market Operator received N135.81 million from various domestic customers toward outstanding invoices from preceding quarters.
Notably, Ajaokuta Steel Co. Ltd. and its host community failed to remit any payments toward outstanding invoices for a total of N1.27 billion from the Nigerian Bulk Electricity Trading company (NBET) and N0.11 billion from the Market Operator in 2024/Q4, continuing a pattern of non-payment. The NERC has highlighted this issue to government authorities for potential intervention.
In this quarter, Nigeria’s electricity distribution companies (DisCos) generated N509.84 billion, achieving a collection efficiency of 77.44%. This figure is an improvement from Q3 2024, where collections were N466.69 billion with a lower efficiency of 74.55%. The increased efficiency by 2.89 percentage points indicates better revenue management compared to previous quarters.
The article emphasizes the significant electricity debt owed by Benin Republic and Togo to Nigeria, as well as the overall performance of payments from bilateral customers. While some international and domestic customers have made payments, the long-standing patterns of non-payment, particularly by Ajaokuta Steel Co. Ltd., remain a critical issue. Nigeria’s electricity distribution sector has seen improved collection efficiency in recent months, suggesting positive trends amidst ongoing challenges.
Original Source: punchng.com
