The Nigerian Electricity Regulatory Commission (NERC) says three international customers failed to remit $16.11 million owed for electricity supply in the first quarter (Q1) of 2023.
Using the Central Bank of Nigeria’s (CBN) exchange rate as of August 8, 2023, ($/768.767), the three international customers are owing N12.38 billion in debt, according to TheCable’s calculations.
Under an international treaty, Nigeria sells electricity to neighbouring countries like Benin Republic, Togo, and Niger.
NERC’s 2023 Q1 report shows that the aforementioned value of electricity was sold to four firms in three countries.
The firms are Paras-SBEE and Transcorp-SBEE both from the Benin Republic; Mainstream-NIGELEC from Niger; and Odukpani-CEET from Togo.
“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 report reads.
“The market operations (MO) issued invoices to all the eight bilateral customers in the NESI in 2023/Q1 which amounted to N842.38 million. During the quarter, only North-South/Star Pipe made a remittance of ₦15.38 million against an invoice of N24.69 million issued to them.
“This means that for the period, the cumulative remittance performance of bilateral customers was 1.83 percent.”
The NERC explained that the non-remittance by international and bilateral customers continues a trend that should prompt the MO to invoke the provision of the market rules to curtail the payment indiscipline being exhibited by the various market participants.
The regulator also said under the special customers’ arrangement, Ajaokuta Steel Company Limited and the host community did not make any payment towards the N0.38 billion (NBET) and N0.08 billion (MO) invoices received in Q1 2023.
“As of March 2023, Ajaokuta Steel Company Limited had a total outstanding debt of N26,715,043,905.73 to NBET and N1,739,966,505.69 to the MO. NERC has communicated this longstanding debt to the federal government for interventions.” the document further reads.
“This continues a longstanding trend of non-payment by this customer and the commission has communicated the need for intervention on this issue to the relevant FGN ministries.”