The Nigerian Electricity Regulatory Commission (NERC) has reported that neighbouring countries Benin Republic and Togo owe Nigeria a combined sum of $8.84 million for electricity supplied during the fourth quarter of 2024.
This was disclosed in NERC’s latest market report, which outlined the financial performance of bilateral power supply arrangements between Nigerian power generation companies and international offtakers.
According to the report, a total invoice of $14.05 million was issued to six international bilateral customers for services rendered in the quarter.
However, only $5.21 million was remitted, reflecting a payment compliance rate of 37.08 percent.
Among the defaulting customers are Paras-Société Béninoise d’Énergie Électrique (SBEE), Paras-Compagnie Energie Electrique du Togo (CEET), and Transcorp-SBEE, which operate power delivery agreements between Nigerian power plants and utilities in Benin and Togo.
Notably, Odukpani-CEET in Togo was among the highest defaulters, with an outstanding invoice of $2.37 million.
Only Mainstream Energy Solutions, supplying power to Niger’s NIGELEC, settled its $2.6 million invoice in full, maintaining its consistent track record of compliance.
NERC also noted that some of the international customers made partial payments during the review period towards prior outstanding invoices from previous quarters. Paras-CEET, Paras-SBEE, and Transcorp-SBEE collectively remitted a total of $2.98 million in legacy debt.
The commission raised concerns about the growing financial exposure linked to international power supply agreements, especially with recurring remittance shortfalls.
It warned that persistent underpayment poses a threat to the financial stability of Nigeria’s electricity market, particularly for the Market Operator (MO) and generation companies reliant on timely remittances.
In the domestic segment, bilateral customers remitted ₦1.25 million out of a total invoice of ₦1.98 million, reflecting a 63.36 percent payment rate.
NERC disclosed that certain domestic customers also paid off historical debts amounting to ₦135.81 million during the period under review.
The regulator flagged Ajaokuta Steel Company and its host community for non-payment, having failed to settle their ₦1.27 billion and ₦110 million invoices for Q4 2024, respectively. This continues a trend of poor compliance by the special customer category.
Meanwhile, electricity distribution companies (DisCos) in Nigeria generated a total revenue of ₦509.84 billion in Q4 2024, against a total billing of ₦658.40 billion.
This translates to a collection efficiency of 77.44 percent, marking a 2.89 percentage point increase from the third quarter.
NERC stated that it will continue to monitor remittance performance closely while working with stakeholders to improve accountability across the electricity supply value chain, both domestically and in international markets.
