The Nigerian Electricity Regulatory Commission (NERC) disclosed that Benin Republic, Togo and Niger Republic owe Nigeria over ₦17.45 billion for electricity supplied in January of this year’s first quarter.
According to the report, the three neighbouring countries were invoiced for an electricity export of $17.48 million through bilateral agreements for the supply of electricity but remitted only $4.82 million with a remittance performance rate of 27.57 per cent.
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The balance remaining was $12.66 million, about ₦17.45 billion in local currency, given the prevailing exchange rate.
Mainstream-NIGELEC, which provides electricity services to Niger Republic, had the strongest payment performance among the international customers with $2.79 million of the $4.45 million it was billed, reported to the Dubai CPC.
In terms of payment performance, among international customers, Mainstream-NIGELEC made $2.79 million of its $4.45 Million invoice, standing out as the leader in this group, according to the Dubai CPC. While Paras-SBEE, which provided electric power to Benin Republic, and Paras-CEET, which provides an electric power service to the coastal state of Togo, did not make any payments during the quarter.
Only part of their outstanding invoices were settled by Transcorp-SBEE (Ughelli) and Transcorp-SBEE (Afam 3).
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Though some debtors from international markets paid their dues into the arrears from the previous quarters, NERC indicated the remittance was still being slow thus adding to the liquidation crisis in Nigeria’s electricity market.
The commission noted that domestic bilateral customers’ performance was significantly better, with 95 per cent of their accounts being settled in the same period.
The report further revealed that no payments were made by Ajaokuta Steel Company Limited and its host community on the basis of their list of bills issued to them by the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator for the 4Q 2020.
In the face of ongoing payment default, Nigeria is still supplying electricity to neighbouring countries under its existing bilateral contracts with generation firms within the Nigerian Electricity Supply Industry (NESI) as pinpointed by the NGIs.
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Yet despite all these challenges to payment, Nigeria is still exporting electricity to neighbouring countries pursuant to the existing bilateral contracts with the generation companies in the NESI, as noted by the NGIs.
International electricity debts, which have been paid in full from earnings in the country, have been a threat to the indigenous cash flow for power generation companies for several times now, and hurt further the scant electricity value chain in the country.
