Nigeria is contemplating a drastic measure to disconnect its neighbouring countries from its electricity grid due to their substantial unpaid debts to the nation’s power sector.
According to the Nigerian Electricity Regulatory Commission (NERC), international customers have failed to settle a debt of $5.79 million for electricity supplied in the second quarter of 2024.
In its latest quarterly report, the NERC highlighted that this debt, equivalent to approximately N9.41 billion at the official exchange rate of N1,626.32 per dollar as of October 10, could lead to a total disconnection from Nigeria’s electricity grid.
Nigeria exports electricity to several neighbouring countries, including Niger, Togo, and the Republic of Benin, based on strategic agreements.
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Previously, NERC data indicated that these international electricity customers owed Nigeria over $51 million in power debt in the first quarter of 2024. Currently, they are struggling with a bill of N9.41 billion.
The report detailed that market operators had sent invoices totaling $15.60 million to four companies across three countries, but only $9.81 million has been paid thus far.
The companies involved include Paras-SBEE and Transcorp-SBEE from Benin, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo.
Additionally, the NERC reported that domestic bilateral customers had not paid N695.4 million out of a total of N1.99 billion during the same period.
According to the report, in the second quarter of 2024, the four international bilateral customers serviced by market operators made cumulative payments of $9.81 million against the $15.60 million invoice issued for services rendered.
Similarly, domestic bilateral customers paid a total of N1.295 billion against the cumulative invoice of N1.991 billion for the same quarter.
While some bilateral customers, both domestic and international, made payments to clear outstanding Market Operator invoices from previous periods, others, like Ajaokuta Steel Company Limited and its host community, failed to make any payments on their N1.39 billion invoice from the Nigerian Bulk Electricity Trading (NBET) or the N0.11 billion invoice from the Market Operator issued during the second quarter of 2024.
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