The Nigerian Electricity Regulatory Commission (NERC) has revealed that three international customers failed to remit a total of $16.11 million owed for electricity supply during the first quarter (Q1) of 2023. Based on the Central Bank of Nigeria’s exchange rate as of August 8, 2023, this amounts to a debt of approximately N12.38 billion. Nigeria, under an international treaty, sells electricity to neighboring countries such as Benin Republic, Togo, and Niger.
According to NERC’s Q1 2023 report, the unpaid amount corresponds to electricity sold to four firms in three countries. The firms involved are Paras-SBEE and Transcorp-SBEE from Benin Republic, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo.
The report states, “None of the underlisted international customers made any payment against the cumulative $16.11 million invoice issued to them in Q1 2023; Paras-SBEE ($3.46 million), Transcorp-SBEE ($3.85 million), Mainstream-NIGELEC ($5.48 million) and Odukpani-CEET ($3.32 million).”
The overall remittance performance of bilateral customers during the quarter was just 1.83 percent, with only North-South/Star Pipe making a partial remittance of ₦15.38 million against an invoice of N24.69 million.
NERC emphasized that the trend of non-remittance by both international and bilateral customers underscores the need for the Market Operations (MO) to enforce provisions within the market rules to address the payment indiscipline demonstrated by various market participants.
Furthermore, under the special customers’ arrangement, Ajaokuta Steel Company Limited and the host community did not make any payments toward the N0.38 billion (Nigerian Bulk Electricity Trading Plc) and N0.08 billion (Market Operations) invoices received in Q1 2023.
As of March 2023, Ajaokuta Steel Company Limited is reported to have accumulated outstanding debts of N26,715,043,905.73 to the Nigerian Bulk Electricity Trading Plc (NBET) and N1,739,966,505.69 to the Market Operations (MO). NERC has communicated this longstanding debt issue to the federal government, highlighting the need for intervention.
