Nigeria owes Benin and Togo $5.8 million in energy debt.
According to the Nigerian Electricity Regulatory Commission (NERC), Benin Republic and Togo owe Nigeria $5.79 million for the energy used in the second quarter (Q2) of 2024.
According to the NERC’s second quarter 2024 report, out of the $15.60 million that was billed for power utilized during that time, $9.81 million was paid by international consumers between April and June 2024.
The businesses in question include Odukpani-CEET in Togo, Mainstream-NIGELEC in Togo, Para-SBEE in the Benin Republic, and Transcorp-SBEE in Benin.
Transcorp-SBEE in Benin remitted all of the $4.25 million that Nigeria had charged, whereas Para-SBEE in the Benin Republic remitted 71.21 percent of the $4.29 million that was invoiced.
In Togo, Mainstream-NIGELEC paid 69.72% of $3.59 million, but Odukpani-CEET made no payments at all.
Transcorp-SBEE in Benin remitted all of the $4.25 million that Nigeria had charged, whereas Para-SBEE in the Benin Republic remitted 71.21 percent of the $4.29 million that was invoiced.
During the period under review, Odukpani-CEET made no remittances, while Mainstream-NIGELEC in Togo paid 69.72 percent of $3.59 million.
None of the four foreign clients paid for the $14.19 million in power that was used during the first quarter. According to NERC, the foreign bilateral clients made $16.65 million in payments during the second quarter.
It stated that “Transcorp-SBEE and Mainstream-NIGELEC have paid all outstanding invoices from prior quarters.”
The four foreign bilateral clients that Gencos serves in the NESI paid $9.81 million toward the $15.60 million total invoice for services that the MO had issued.
According to the electricity regulator, residential consumers paid N1.30 billion in the second quarter, which translates to a 65.07 percent remittance performance, compared to the N1.99 billion cumulative invoice that the MO sent them for services performed.
For earlier bills, domestic bilateral clients paid almost N1.30 billion.
Between the first and second quarters, the federal government’s responsibility to provide power subsidies decreased from N633.30 billion to N380.06 billion.
“The government’s policy directive to implement reviews of tariffs charged to Band A customers while the tariffs for Band B-E customers remain frozen at the rates payable since December 2022 is the reason for the significant decrease in the Federal Government’s subsidy obligation,” NERC stated.
Long-standing regional energy trading links are reflected in the $5.8 million in combined electricity debt that Benin and Togo owe Nigeria. Under the terms of the West African Power Pool (WAPP) agreement, Nigeria provides power to its neighbors through the Nigerian power Regulatory Commission (NERC) and the Transmission Company of Nigeria (TCN). The goal of this agreement is to increase West Africans’ access to energy.
The debt highlights issues with cross-border electrical transfers, such as infrastructure constraints and payment delays. These arrears increase the financial burden on Nigeria’s power sector, impacting its liquidity and ability to maintain supply, even as the country struggles with its own internal electricity problems.
Social Media Responses:
“Nigeria should concentrate on resolving its energy debt with Benin and Togo,” said John Adewale on Twitter. There are currently enough issues facing our power industry.
Funmi Okechukwu of LinkedIn: “The $5.8 million energy debt owed to Benin and Togo underscores the need for Nigeria to reform its energy payment structure.”
Facebook user Amina Musa: “So Nigeria is providing electricity to foreign nations and still owes them? We have to organize our home.
Reddit user Chinedu Emeka: “Togo and Benin provide Nigeria with energy… We continue to experience power disruptions at home in the meantime. Priorities?
Grace Eze (Instagram): “It’s absurd that Nigeria owes Benin and Togo $5.8 million in energy debt while we have power outages! “#FixTheSystem #PowerCrisis.”
Ibrahim Suleiman (WhatsApp): “Nigeria must pay off this energy debt as soon as possible.
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