Benin Republic and Togo owe Nigeria $8.84 million for electricity consumed in Q4 2024, according to the Nigerian Electricity Regulatory Commission. Overall, the revenue from distribution companies reached N509.84 billion, reflecting a 77.44 percent collection efficiency. Issues regarding non-payment from key customers persist and may require governmental intervention.
The Benin Republic and Togo owe Nigeria a total of $8.84 million for electricity consumed during the fourth quarter of 2024, according to recent reports. This information was disclosed by the Nigerian Electricity Regulatory Commission, which monitored remittances from both domestic and international customers, highlighting the performance of bilateral payment agreements during this period.
The report stated that the six international bilateral customers in Nigeria’s electricity supply sector made a payment of $5.21 million out of a total invoice of $14.05 million issued for services in 2024/Q4, resulting in a remittance performance of 37.08 percent. Key payments include: Paras-SBEE in the Benin Republic ($2.65 million), Paras-CEET ($1.64 million), and Transcorp-SBEE (Ughelli) at $1.71 million out of its invoice of $3.59 million.
Additionally, the report indicated that domestic bilateral customers collectively paid N1.25 million against the N1.98 million invoiced, achieving a remittance performance of 63.36 percent. Notably, some bilateral clients made payments for preceding outstanding invoices during 2024/Q4, including significant contributions from Paras-CEET, Paras-SBEE, and Transcorp-SBEE totaling $2.98 million.
Furthermore, Ajaokuta Steel Co. Ltd. and the related host community did not fulfill their payment obligations concerning the N1.27 billion and ₦0.11 billion invoices issued in 2024/Q4, continuing a concerning trend of non-payment that has been communicated to Nigerian Federal Government authorities for its intervention.
In terms of overall revenue for the last quarter of 2024, Nigerian electricity distribution companies generated N509.84 billion from customers. This amount represents 77.44 percent of the N658.40 billion billed, marking an improvement in collection efficiency compared to the previous quarter, which stood at 74.55 percent.
In conclusion, Benin and Togo’s electricity debts to Nigeria highlight the ongoing challenges within the bilateral electricity trade agreements. The improved collection rates among distribution companies reflect a gradual trend towards better financial health in the Nigerian electricity sector. Nevertheless, chronic non-payment issues, particularly from significant customers like Ajaokuta Steel, necessitate swift intervention from authorities to enhance compliance and ensure sustainable operations in the energy market.
Original Source: punchng.com
