Benin Republic and Togo owe Nigeria $8.84 million for electricity consumed in Q4 2024. NERC’s report indicates a payment performance of 37.08% from international customers and 63.36% from domestic ones. Ajaokuta Steel Co. Ltd remains a significant non-payer, while overall revenue collection efficiency among Nigerian DisCos improved to 77.44%.
The Benin Republic and Togo collectively owe Nigeria $8.84 million for electricity consumption recorded in the fourth quarter of 2024, according to The PUNCH. A report released by the Nigerian Electricity Regulatory Commission (NERC) indicates that bilateral customers, including both domestic and international entities, are part of the invoice settlements for that quarter.
NERC’s report highlights that six international customers supplied by Generating Companies (Gencos) made a total payment of $5.21 million against an issued invoice of $14.05 million for services rendered in 2024/Q4, resulting in a remittance performance of 37.08 percent. Notable international customers include Paras-SBEE and Paras-CEET from the Benin Republic, along with Transcorp-SBEE (Ughelli) and Transcorp-SBEE (Afam 3) for various outstanding payments.
Moreover, the domestic bilateral customers reported contributions of N1.25 million against a cumulative invoice of N1.98 million, achieving a remittance performance of 63.36 percent. Additional payments were also recorded for previous outstanding invoices, with Paras-CEET, Paras-SBEE, and Transcorp-SBEE accounting for amounts of $0.98 million, $0.70 million, and $1.3 million, respectively.
Notably, Ajaokuta Steel Co. Ltd and the associated host community have not made any payments towards significant outstanding invoices of N1.27 billion and N0.11 billion for the fourth quarter. This pattern of non-payment has been ongoing, prompting NERC to address the necessity for governmental intervention.
The report further elaborates that electricity distribution companies (DisCos) in Nigeria generated N509.84 billion during the last quarter of 2024, which accounts for 77.44 percent of the total N658.40 billion billed to customers. This figure reflects a substantial increase in collection efficiency compared to the previous quarter, where the efficiency stood at 74.55 percent. The higher collection efficiency can be seen as an improvement in the overall financial performance of the electricity distribution sector in Nigeria.
In summary, the electricity debts owed by Benin Republic and Togo to Nigeria underscore ongoing issues in the international electricity market. While some progress has been made in payment collections, notable outstanding debts from various customers, particularly Ajaokuta Steel Co. Ltd, persist. Nevertheless, the overall collection efficiency of Nigeria’s DisCos has improved, indicating potential for future revenue stability in the electricity sector.
Original Source: punchng.com
