Benin Republic & Togo Owe Nigeria $88.84M For Electricity In Q4 2024

Overview of Nigeria’s Electricity Debt Crisis with Neighboring Countries

Benin Republic and Togo have accumulated a combined electricity debt of $88.84 million for power consumed during the fourth quarter of 2024, according to the latest report by the Nigerian Electricity Regulatory Commission (NERC).

The commission disclosed these figures in its Q4 2024 market report, revealing that six international bilateral customers, who receive electricity from Nigeria’s power-generating companies (Gencos), paid only $5.21 million out of a total invoice of $14.05 million issued by the Market Operator. This results in a remittance performance of just 37.08%.

Breakdown of Electricity Debts from International Customers

The NERC report highlights the outstanding payments owed by international electricity consumers:

Paras-SBEE (Benin Republic) – Owes $2.65 million
Paras-CEET (Benin Republic) – 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

The only company that fully settled its electricity bill was Mainstream-NIGELEC, which cleared an invoice of $2.60 million in full.

Domestic Electricity Consumers Also Owe Large Sums

Aside from international customers, Nigerian domestic consumers also struggled with electricity bill payments. The report reveals that local bilateral customers paid just ₦1.25 million out of ₦1.98 million billed, reflecting a remittance rate of 63.36%.

Moreover, some international customers made payments toward outstanding debts from previous quarters:

Paras-CEET cleared $0.98 million
Paras-SBEE paid $0.7 million
Transcorp-SBEE settled $1.3 million

Similarly, Nigerian domestic bilateral customers contributed ₦135.81 million toward clearing previous invoices.

Ajaokuta Steel and Other Special Customers Failed to Make Payments

The Ajaokuta Steel Company Ltd. and its host community did not make any payments for their electricity bills in Q4 2024, accumulating outstanding invoices totaling ₦1.27 billion (NBET) and ₦0.11 billion (MO).

Nigerian Electricity Companies Generated ₦509.84 Billion in Q4 2024

In addition to tracking international and bilateral payments, NERC also reported that electricity distribution companies (DisCos) in Nigeria generated a total of ₦509.84 billion in revenue within the last three months of 2024. This amount accounts for 77.44% of the total ₦658.40 billion billed to consumers during the period.

The commission noted that this collection efficiency improved by 2.89 percentage points compared to the third quarter of 2024.

Impact of Electricity Debts on Nigeria’s Power Sector

The inability of both domestic and international consumers to fully pay for electricity poses significant financial challenges for Nigeria’s power sector. Persistent debts limit investment in infrastructure, disrupt power supply, and could lead to stricter electricity export policies.

External References and Additional Reading

For a deeper understanding of Nigeria’s electricity exports and financial challenges in the energy sector, visit the Nigerian Electricity Regulatory Commission (NERC) official website.