Benin Republic and Togo Owe Nigeria $8.84 Million for Electricity Supplied in Q4 2024
The Nigerian Electricity Regulatory Commission (NERC) has disclosed that Benin Republic and Togo owe Nigeria a total of $8.84 million for electricity consumed in the fourth quarter of 2024.
According to NERC’s Q4 2024 report, six international customers were billed $14.05 million for electricity supply, but they only paid $5.21 million, resulting in a 37.08% remittance rate.
Breakdown of International Electricity Debt
The report highlighted the outstanding payments from international customers, showing that:
- Paras-SBEE (Benin) owes $2.65 million
- Paras-CEET (Benin) owes $1.64 million
- Transcorp-SBEE (Ughelli, Benin) paid $1.71 million out of $3.59 million
- Transcorp-SBEE (Afam 3, Benin) paid $0.90 million out of $1.2 million
- Odukpani-CEET (Togo) owes $2.37 million
Among these international clients, only Mainstream-NIGELEC fully settled its $2.60 million invoice.
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Domestic Electricity Payments Also Lagging
Apart from international debts, domestic bilateral customers in Nigeria also struggled with payments. NERC reported that these customers paid N1.25 million against a total invoice of N1.98 million, reflecting a 63.36% remittance rate.
Additionally, some customers made payments towards outstanding debts from previous quarters, including:
- Paras-CEET (Benin): $0.98 million
- Paras-SBEE (Benin): $0.7 million
- Transcorp-SBEE: $1.3 million
In Nigeria, domestic customers also cleared part of their old debts, with payments totaling N135.81 million, spread across multiple entities.
Ajaokuta Steel and Host Community Default on N1.27 Billion Payment
The report revealed that Ajaokuta Steel Co. Ltd. and its host community failed to pay anything towards their electricity invoices, which amounted to N1.27 billion from the Nigerian Bulk Electricity Trading (NBET) and N0.11 billion from the Market Operator (MO) in Q4 2024.
Nigeria’s Electricity Distribution Revenue in Q4 2024
Despite these challenges, Nigeria’s electricity distribution companies generated N509.84 billion in revenue during the last three months of 2024. This represents 77.44% of the N658.40 billion billed to customers.
NERC also noted that the collection efficiency increased by 2.89 percentage points from Q3 to Q4 2024, showing slight improvement in payment rates.
Conclusion
The growing debt from Benin Republic and Togo highlights ongoing issues in Nigeria’s international electricity supply agreements. With outstanding payments from both foreign and domestic customers, Nigeria’s power sector continues to face financial strain.
What do you think about Nigeria supplying electricity to neighboring countries despite payment challenges? Share your thoughts in the comments!
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