In 2023, international customers from Niger, Benin, and Togo paid Nigeria’s NESI a total of $50.36 million for electricity, achieving a remittance performance of 94.04%. Domestic customers, however, reported a lower remittance performance of 84.94%, indicating ongoing challenges in payment compliance.
A detailed report published by the Nigerian Electricity Regulatory Commission (NERC) outlines the payments made by international customers from Niger, Benin, and Togo for electricity supplied by the Nigerian Electricity Supply Industry (NESI) in the year 2023. These countries collectively remitted a total of $50.36 million, achieving a commendable remittance performance of 94.04%. The breakdown of the payments indicates that the invoice amount totaled $53.55 million, with international entities making substantial payments toward their electricity consumption. The specific customers involved include the Societe Beninoise d’Energie Electrique from Benin, the Compagnie Energie Electrique du Togo from Togo, and the Societe Nigerienne d’Electricite from Niger. In addition to the international agreements, it is noteworthy that the Nigerian Electricity Supply Industry has 19 active domestic bilateral customers. These domestic customers received a cumulative invoice amounting to N10,320.84 million but were only able to remit N8,766.15 million, leading to an overall remittance performance of 84.94%. This data highlights a significant shortfall, as a balance of 15.06% remains outstanding. It is important to note that the Federal Government previously reported that international electricity buyers had accrued debts totaling approximately $51.26 million for electricity exported within the preceding year. In reaction to these debts, the government instituted a directive that restricts system operators in the Nigerian power sector to supply no more than 6% of total available grid generation per hour to international consumers or off-takers, thereby emphasizing a cautious approach in managing international electricity supply commitments.
In the context of the Nigerian power sector, the payment dynamics between Nigeria and its neighboring countries—Niger, Benin, and Togo—have become an important aspect of electricity distribution and revenue generation. The Nigerian Electricity Regulatory Commission (NERC) plays a crucial role in monitoring and evaluating payments made by various customers, both domestic and international. The issues surrounding remittance performance illustrate the challenges faced in the power supply chain and highlight the financial obligations of international electricity consumers toward Nigeria. Furthermore, the recent reports of outstanding payments underscore the commitment of the Nigerian government to enforce regulations that govern international electricity sales, thus safeguarding revenues for its domestic supply system.
In summary, the report from the Nigerian Electricity Regulatory Commission reveals significant financial transactions undertaken by the international customers of the Nigerian Electricity Supply Industry. With payments amounting to $50.36 million, reflecting a remittance performance rate of 94.04%, the data illustrates Nigeria’s key role in supplying electricity to neighboring countries. However, the outstanding payments from domestic customers reveal areas of concern regarding full remittance. The government’s proactive stance in limiting international supply and addressing outstanding debts underscores its commitment to maintaining the integrity and sustainability of the electricity sector.
Original Source: politicsnigeria.com
