International consumers failed to remit approximately $51.26 million to Nigeria for electricity exported in 2023, according to the latest industry data released by the Federal Government.
The data also revealed that another group of customers classified as bilateral power consumers did not remit about N7.61 billion to the Nigerian power sector in the same period.
The Nigerian Electricity Regulatory Commission (NERC) condemned this, describing it as a payment indiscipline that must be curtailed by the Market Operator, a division of the Transmission Company of Nigeria responsible for Nigeria’s power exports.
Analysis of the data indicated that international consumers failed to remit $16.11 million, $11.97 million, $11.16 million, and $12.02 million to Nigeria for electricity exported to them in the first, second, third, and fourth quarters of 2023 respectively.
Similarly, bilateral consumers did not pay N827 million, N2.03 billion, N2.8 billion, and N1.95 billion to the Nigerian government for electricity sold to them in the same quarters.
Although Nigeria faces challenges in meeting its domestic electricity demand, it exports electricity based on strategic agreements with neighboring countries such as Niger, Togo, and Benin.
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NERC expressed concern over the non-remittance by special and cross-border customers, stating that “None of the under-listed international customers made any payment against the cumulative $16.11 million invoice issued to them in 2023/Q1.”
The commission urged the Market Operator to enforce market rules to curb the payment indiscipline by various market participants, highlighting that the non-remittance by bilateral consumers continues a trend seen in past quarterly reports.
International consumers, including Paras-SBEE and Transcorp-SBEE from Benin, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo, have been identified as defaulters in these payments.
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In subsequent quarters, the remittance by special and cross-border customers remained poor, with only a few payments made against issued invoices.
The commission emphasized the need for all customers to meet their payment obligations, especially in light of Nigeria’s power supply challenges.
