Tuesday, 05 November, 2024

Unpaid bills cast shadow on Nigeria’s electricity exports


Nigerian-Electricity-Regulatory-Commission-NERC

Estimated reading time: 3 minutes

A recent report by the Nigerian Electricity Regulatory Commission (NERC) reveals a concerning trend – outstanding electricity bills from neighboring countries. Customers in Togo, Benin, and Niger owe a combined $51.2 million for electricity exported from Nigeria in 2023.

Nigerian-Electricity-Regulatory-Commission-NERC

NERC made this known in its quarterly report released recently.

Under international treaty, Nigeria sells electricity to neighbouring countries like Benin Republic, Togo, and Niger.

According to NERC, special and cross-border customers include Mainstream-NIGELEC and Odukpani-CEET (from Togo), while Paras-SBEE and Transcorp-SBEE from (the Republic of Benin).

Another category under the international market is the bilateral customers.

NERC said bilateral power consumers did not remit N7.61 billion to Nigeria in 2023.

Bilateral customers are customers that purchase electricity directly from generating companies (GenCos) without a middleman (e.g., bulk trader).

In the first quarter of (Q1) 2023, international customers failed to remit $16.11 million while bilateral consumers failed to remit N827 million.

ā€œNone of the under-listed international customers made any payment against the cumulative $16.11 million invoice issued to them in 2023/Q1: Paras-SBEE ($3.46 million), Transcorp-SBEE ($3.85 million), Mainstream-NIGELEC ($5.48 million) and Odukpani-CEET ($3.32 million),ā€ the commission said.

Out of N842.38 million invoice issued by MO to all the eight bilateral customers in the NESI (Nigeria Electricity Supply Industry), only North South/Star Pipe made a remittance of N15.38 million against its invoice of N24.69 million.ā€

In the second quarter of the review period, the unsettled remittances dropped to $11.97 million and bilateral customersā€™ debt stood at N2 billion.

ā€œIn 2023/Q2, out of the four international customers serviced by market operators (MO), only Transcorp-SBEE made a payment of $1.43 million against an invoice of $2.13 million issued for services rendered in 2023/Q2,ā€ NERC said.

This debt raises questions about the effectiveness of cross-border electricity trade agreements and their potential impact on Nigeria’s power sector.

The report details a complete lack of payment in the fourth quarter of 2023, with no remittance on a $12.02 million invoice issued by the Market Operator (MO) to the four international customers.

Experts point to several potential reasons for the non-payment. One possibility is financial constraints within the importing nations. Another factor could be inefficiencies or disagreements within the billing and payment processes.

The situation is particularly concerning for Nigeria, which grapples with its own power generation and distribution challenges. Recovering outstanding payments could provide much-needed revenue for reinvestment in the domestic grid infrastructure.

Nigeria’s role as a regional electricity exporter holds immense potential. However, ensuring timely payments is crucial for the viability of these agreements and their ability to contribute to a more stable and integrated West African power grid.


Discover more from News Round The Clock

Subscribe to get the latest posts sent to your email.

0 comments on “Unpaid bills cast shadow on Nigeria’s electricity exports

Leave a Reply

Join The Conversation

Join Our Mailing List

Nigerian Wedding – Dolapo + Jide ā¤ļøšŸ’

GROCERIES CATEGORY

Premier League Table

The Super Eagles at the FIFA World Cup (1994-2018)

Follow NRTC on Twitter

Discover more from News Round The Clock

Subscribe now to keep reading and get access to the full archive.

Continue reading