In 2023, Niger, Benin, and Togo paid Nigeria $50.36 million for electricity, achieving a 94.04% remittance performance. The total invoiced amount was $53.55 million. Domestic customers, however, reported a lower payment rate of 84.94%, with a remittance gap of 15.06%. The Nigerian government previously noted that international customers owed approximately $51.26 million last year, prompting restrictions on electricity supply to them.
A recent publication from the Nigerian Electricity Regulatory Commission (NERC) has revealed key details regarding the financial transactions between Nigeria and its international electricity customers in 2023. Specifically, customers from Niger, Benin, and Togo collectively paid $50.36 million for electricity distribution, achieving a notable remittance performance of 94.04%. The financial breakdown indicates a total invoice of $53.55 million, demonstrating the commitment of these countries to settle their electrical supply obligations. The international customers accountable for these payments include: – Societe Beninoise d’Energie Electrique (Benin Republic) – Compagnie Energie Electrique du Togo (Togo) – Societe Nigerienne d’Electricite (Niger) Furthermore, the NERC disclosed that the Nigerian Electricity Supply Industry (NESI) serves 19 domestic bilateral customers, who were invoiced a total of N10,320.84 million but only managed to remit N8,766.15 million, resulting in an 84.94% remittance rate. This leaves an outstanding balance of 15.06%, indicating a significant shortfall in payments from domestic customers. Last year, the Nigerian Federal Government estimated that international electricity consumers owed a cumulative sum of $51.26 million for electric power supplied. In response to these ongoing issues, the government has mandated system operators within the Nigerian power sector to limit the electricity supplied to international customers to no more than 6% of the total available grid generation per hour.
The Nigerian Electricity Regulatory Commission (NERC) is tasked with overseeing the electricity sector in Nigeria, ensuring compliance and efficiency. Given the challenges presented by unpaid debts from international electricity consumers, the NERC has implemented monitoring and reporting practices to enhance payment remittance. The government’s previous experiences of significant outstanding debts by international customers have necessitated stricter measures to ensure that these countries promptly meet their financial obligations. The recent payments from Niger, Benin, and Togo suggest a positive trend towards improved accountability, yet gaps in remittance from local customers remain concerns for the Nigerian power industry.
In summary, the payments made by international customers from Niger, Benin, and Togo underscore their commitment to fulfilling electricity supply contracts with Nigeria in 2023. Despite achieving a commendable remittance performance, there are still challenges within the domestic sector, indicated by substantial outstanding payments. The Federal Government’s response, limiting electricity supply to international customers, highlights the balancing act required to manage domestic and international demand effectively. Overall, this report from NERC reflects significant financial transactions while revealing areas for improvement in the Nigerian electricity market.
Original Source: politicsnigeria.com
