The Nigerian Electricity Regulatory Commission (NERC) says international customers owe $5.7 million for electricity supply in the third quarter (Q3) of 2024.
The international customers are Paras-SBEE and Transcorp-SBEE both from the Benin Republic; Mainstream-NIGELEC from Niger; and Odukpani-CEET from Togo.
Under an international treaty, Nigeria sells electricity to neighbouring countries like Benin Republic, Togo, and Niger.
The NERC, in its latest quarterly report, said market operators (MO) issued an invoice of $12.19 million to six firms – out of which $6.49 million was paid.
“In 2024/Q3, the six (6) international bilateral customers purchasing power from the grid connected GenCos made a cumulative payment of $6.49 million against the $12.19 million invoice issued to them by the MO for services rendered in 2024/Q3,” NERC said.
“Similarly, the domestic bilateral customers made a cumulative payment of ₦1,566.51 million against the ₦2,100.79 million invoice issued to them by the MO for services rendered in 2024/Q34.”
In terms of outstanding invoices, the report said some bilateral customers (both domestic and international customers) made payments in Q3 2024 for outstanding MO invoices from previous quarters.
“Odukpani-CEET made a payment of $1.33 million towards outstanding invoices from previous quarters,” the commission said.
“Similarly, the MO received ₦31.51 million from the domestic bilateral customers (North-South/Star Pipe; ₦9.50 million and Trans-Amadi (OAU/FMPI); ₦22.01 million) towards outstanding invoices from previous quarters.”
NERC also said its special customer – Ajaokuta Steel Co. Ltd and the host community — did not make any payment towards the N1.26 billion (NBET) and N0.11 billion (MO) invoices received in 2024 Q3.
“This continues a longstanding trend of non-payment by this customer and the Commission has communicated the need for intervention on this issue to the relevant FGN authorities,” it said.
According to NERC, continuation of the non-payment could trigger total disconnection from the grid.
In September, Shuaibu Audu, minister of steel development, signed a memorandum of understanding (MoU) with the builders of the Ajaokuta steel plant, Messrs Tyazhpromexport (TPE), for the rehabilitation, completion, and operation of the plant and the National Iron Ore Mining Company (NIOMCO).
Three months later, Natasha Akpoti-Uduaghan, chairman, senate committee on local content, said plans are underway to kick-start the revitalisation of the Ajaokuta Steel Company plants in the first quarter (Q1) of 2025.