Benin and Togo Owe Nigeria $8.8 Million in Electricity Debt
The Federal Government has revealed that Benin Republic and Togo owe Nigeria $8.84 million for electricity supplied in the fourth quarter of 2024, according to a report by the Nigerian Electricity Regulatory Commission (NERC).
The NERC report detailed that six international bilateral customers, who receive electricity from Nigerian generation companies (GenCos), collectively paid only $5.21 million out of a total invoice of $14.05 million, representing a 37.08% remittance rate.
Among the outstanding debts, Paras-SBEE in Benin Republic owes $2.65 million, Paras-CEET in Benin owes $1.64 million, and Odukpani-CEET in Togo has a debt of $2.37 million. Meanwhile, Transcorp-SBEE (Ughelli) in Benin paid $1.71 million out of $3.59 million, and Transcorp-SBEE (Afam 3) settled $0.90 million out of its $1.2 million invoice.
The only international customer that cleared its full debt was Mainstream-NIGELEC, which paid its $2.60 million invoice in full.
The report also highlighted that domestic bilateral customers in Nigeria made N1.25 million in payments against the N1.98 million billed to them, achieving a 63.36% remittance rate.
Additionally, Ajaokuta Steel Company Limited and its host community failed to pay their outstanding electricity bills of N1.27 billion (NBET) and N0.11 billion (MO), continuing a longstanding pattern of non-payment. The federal government has been urged to intervene in resolving this issue.
Meanwhile, electricity distribution companies (DisCos) in Nigeria generated N509.84 billion in revenue in the last quarter of 2024, representing 77.44% of the total N658.40 billion billed to customers. This marks a slight improvement compared to the 74.55% collection efficiency recorded in the third quarter of 2024.
The ongoing electricity debt by Benin and Togo raises concerns over Nigeria’s bilateral energy agreements and the need for improved enforcement of payment obligations.
