The Nigerian Electricity Regulatory Commission (NERC) has revealed that Benin Republic and Togo owe Nigeria a staggering $8.84 million for electricity consumed during the fourth quarter of 2024. This disclosure has sparked discussions about the challenges of international energy agreements and the financial strain on Nigeria's electricity sector.
According to NERC's report, six international bilateral customers, including entities in Benin and Togo, were issued invoices totaling $14.05 million for electricity supplied by Nigerian generation companies (Gencos). However, only $5.21 million was paid, resulting in a remittance performance of just 37.08%. Among the defaulters:
- Paras-SBEE in Benin Republic owes $2.65 million.
- Paras-CEET in Benin owes $1.64 million.
- Odukpani-CEET in Togo owes $2.37 million.
While some customers made partial payments towards outstanding invoices from previous quarters, the debt remains significant. For instance, Paras-CEET and Paras-SBEE paid $0.98 million and $0.7 million, respectively, towards older debts. Despite these efforts, the overall remittance performance highlights the financial challenges faced by Nigeria in maintaining energy supply agreements.
The unpaid debts have implications for Nigeria's electricity industry, which is already grappling with issues such as infrastructure deficits and revenue collection inefficiencies. NERC reported that electricity distribution companies in Nigeria generated N509.84 billion in revenue during the last quarter of 2024, representing a collection efficiency of 77.44%. While this marks an improvement from the previous quarter, the international debts add to the sector's financial burden.
The Nigerian government and NERC are expected to engage with Benin and Togo to address the outstanding debts and ensure compliance with payment agreements. Strengthening international energy partnerships and improving payment mechanisms will be crucial for sustaining Nigeria's electricity supply and fostering regional cooperation.