Benin and Togo owe Nigeria $8.84 million for electricity from Q4 2024. The NERC reports a payment rate of 37.08% from international customers and a 63.36% from domestic ones. Ajaokuta Steel Co. remained a significant non-payer, prompting calls for intervention. However, overall collection efficiency for DisCos reached 77.44%, an improvement from the previous quarter.
The Republic of Benin and Togo are reported to owe Nigeria approximately $8.84 million for electricity consumed during the fourth quarter of 2024. This information was disclosed by the Nigerian Electricity Regulatory Commission (NERC) in a report detailing remittances made by both domestic and international bilateral customers for services rendered during this quarter.
The report indicated that the six international customers supplied by Generating Companies (Gencos) in Nigeria made a cumulative payment of $5.21 million against a total invoice of $14.05 million. This results in a remittance performance of 37.08 percent, reflecting a significant shortfall in payments owed. Specific amounts owed by different international companies include: Paras-SBEE in Benin ($2.65 million), Paras-CEET in Benin ($1.64 million), Transcorp-SBEE (Ughelli) in Benin ($1.71 million), and Odukpani-CEET in Togo, which owes $2.37 million.
Notably, Mainstream-NIGELEC was the only company to settle its entire invoice of $2.60 million. Additionally, domestic bilateral customers registered payments of N1.25 million against an invoice of N1.98 million, yielding a remittance performance of 63.36 percent. The report also noted payments made by some international customers for outstanding invoices from previous quarters, highlighting continued efforts to address arrears.
The NERC reported a lack of payments from special customer Ajaokuta Steel Co. Ltd towards a total of N1.27 billion owed for invoices received during the fourth quarter. This ongoing trend of non-payment has prompted the commission to seek intervention from relevant authorities in the Federal Government of Nigeria.
Furthermore, the NERC highlighted that electricity distribution companies (DisCos) in Nigeria generated revenues of N509.84 billion during the last quarter of 2024, which accounts for 77.44 percent of the N658.40 billion billed to customers. This marks an improvement in collection efficiency compared to the previous quarter, where the collection rate stood at 74.55 percent. The increase reflects a 2.89 percentage point rise in overall efficiency for the sector during 2024/Q4.
In summary, Benin and Togo’s electricity debt to Nigeria amounts to $8.84 million, with significant shortfalls observed in payments across various bilateral customer accounts. The report emphasizes a need for improved payment strategies, especially from major debtors like Ajaokuta Steel Co. Ltd. Despite these challenges, the overall collection performance of Nigerian electricity distribution companies displays a positive trend, underscoring improvements in revenue recovery efforts.
Original Source: punchng.com
