The Republics of Togo, Niger and Benin owe Nigeria a total sum of N6.18 billion for the electricity supplied to them from January to June last year.
According to data obtained from the Nigerian Electricity Regulatory Commission (NERC), the three countries received a total invoice of N8.12 billion for the six-month period.
However, Benin, paid NN430 million in January from its debt through its power firm, Societe Beninoise d’Energie Electrique, while Togo’s Compagnie Energie Electrique du Togo paid N1.51 billion out of the invoice it received from Nigeria’s Market Operator (MO).
Nigeria, through its electricity transmission company, supplies power to these countries, which are classified as international customers in the Nigerian power sector.
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The data showed that Niger’s power firm, Société Nigérienne d’Electricité (NIGELEC) refused to pay a total invoice of N2.57 billion it received in the first and second quarter of 2020.
SBEE, owned by Benin, has an outstanding payment of N2.07 billion out of N2.5 billion invoice it received for the power supplied to it in Q1 and Q2 of 2020.
The NERC data indicated that Togo also had a debt of N1.54 billion to be paid to Nigeria’s market operator out of N3.05 billion invoice it received from January to June 2020.
Also, Ajaokuta Steel Co. Limited and the host community, which are referred to as special customers, did not make any payment in respect of the N690 million invoices issued by Nigerian Bulk Electricity Trading Plc and MO in the first and second quarters of 2020.
Due to these debts from international customers as well as consumers of electricity in the country, the regulator said the financial viability of Nigerian Electricity Supply Industry (NESI) has remained a major challenge threatening its sustainability.
The NERC said, “The severity of the liquidity challenge in NESI was reflected in the settlement rates of the service charges and energy invoices issued by MO and NBET respectively to each of the DisCos as well as the non- and low- payment by the special and international customers respectively for the services rendered by MO.”
