Niger Republic, Benin Republic, and Togo have reportedly failed to pay a total of $16.11 million owed to the Nigerian government for electricity supply during the first quarter of 2023.
The Nigerian Electricity Regulatory Commission (NERC) disclosed this information in its Q1 2023 report released in Abuja.
According to the report, electricity was supplied to four firms in these countries: Paras-SBEE and Transcorp-SBEE from Benin Republic, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo.
However, the payment situation for these transactions is worrisome. The debts accumulated as follows:
• Paras-SBEE owed $3.46 million
• Transcorp-SBEE owed $3.85 million
• Mainstream-NIGELEC owed $5.48 million
• Odukpani-CEET owed $3.32 million
The NERC expressed concern over the non-remittance of payments by these international and bilateral customers, highlighting the need to address the payment discipline issue exhibited by various market participants.
The NERC report indicated that this trend may lead to invoking provisions in market rules to address the situation.
The report revealed that among the eight bilateral customers within the Nigerian Electricity Supply Industry (NESI), only North-South/Star Pipe made a remittance of ₦15.38 million against an invoice of ₦24.69 million issued to them.
This results in a cumulative remittance performance of only 1.83% for the period, emphasizing the payment challenges faced by the energy supply chain.
The situation underscores the importance of addressing payment discrepancies and ensuring that cross-border electricity transactions are conducted in a fair and transparent manner.
Effective payment mechanisms and strong collaboration among participating countries are crucial to fostering a stable energy market and maintaining a reliable supply of electricity in the region.