Togo, Benin owe Nigeria $14m for electricity – FG

According to information released by the Nigerian Electricity Regulatory Commission, the market operator's cumulative invoice for services rendered in the first quarter of 2024 totaling $14.19 million was not paid by any of the four international bilateral customers that the power generation companies in Nigeria supplied.

This was disclosed in a NERC report.

Nigeria supplies power to its neighboring nations, such as Niger, Togo, and Benin.

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International clients of Nigeria's electricity supply sector include Mainstream-NIGELEC in Togo ($1.21 million), Para-SBEE in Benin Republic ($3.15 million), Transcorp-SBEE in Benin Republic ($4.46 million), and Odukpani-CEET in Togo ($5.36 million). 

None of the four foreign clients paid for the electricity that was exported to them, according to the NERC investigation.

According to the report, "In 2024/Q1, none of the four (4) foreign bilateral customers that the MO services paid anything on the $14.19 million invoice that the MO sent them for services provided in 2024/Q1." 

 

"Similarly, none of the bilateral customers within the country made any payment against the cumulative invoice of N1,860.11 million issued to them by the MO for services rendered in 2024/Q1."

The report also notes that bilateral electricity consumers, both domestic and foreign, have paid for past quarters' outstanding balances. It was reported that eight bilateral clients within Nigeria paid approximately N505.71 million, while two foreign consumers paid approximately $5.19 million.

Distribution Companies (DisCos) received bills for upstream services totaling N114.12 billion in the first quarter of 2024. The bills included N65.96 billion for generation expenditures and N48.16 billion for transmission and administrative services.

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After the DisCos paid N110.62 billion in total, N3.50 billion was still owed. As a result, the remittance performance was 96.93 percent, which is a considerable improvement from the 69.88% that was noted in the 2023 fourth quarter. 

According to the report, the nation's average available generation capacity fell to 4,249.10MW in the first quarter of 2024, down 13.68 % (or 673.16MW) from the 4,922.26MW recorded in the fourth quarter of 2023.

It clarified that the decrease was brought about by 17 of the 27 grid-connected power plants that were reported in the first quarter of 2024 having lower generation capacity than they had in the prior quarter. 

 

The report states, "In 2024/Q1, the average hourly generation of available units decreased by -8.22% (-364.25MWh/h) from 4,433.82MWh/h in 2023/Q4 to 4,069.57MWh/h. The total electricity generated in the quarter also decreased by -9.21% 1 (- 901.94GWh) from 9,789.87GWh in 2023/Q4 to 8,887.93GWh (Figure B).

 

"The decrease in gross energy generation during the quarter was primarily due to the decrease in the available generation capacities of the grid-connected power plants compared to 2023/Q4."

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According to a federal government study from the previous year, foreign electricity users neglected to pay Nigeria some $51.26 million for the electricity that Nigeria sold to them. 

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