International Consumers Owe Nigeria $51.26 Million for Exported Electricity in 2023

The Federal Government has disclosed that international consumers failed to remit approximately $51.26 million to Nigeria for electricity exported in 2023. This revelation comes from the latest industry data highlighting the non-remittance by these consumers.

Unpaid Bills by International and Bilateral Consumers

In addition to the debt from international consumers, another group of customers classified as bilateral power consumers did not remit about ₦7.61 billion to the Nigerian power sector in 2023. The Nigerian Electricity Regulatory Commission (NERC) condemned this development, labeling it as payment indiscipline. NERC emphasized that the Market Operator (MO), a division of the Transmission Company of Nigeria (TCN), must address this issue.

Quarterly Non-Remittances Breakdown

International Consumers:

– Q1 2023: $16.11 million

– Q2 2023: $11.97 million

– Q3 2023: $11.16 million

– Q4 2023: $12.02 million

Bilateral Consumers:

– Q1 2023: ₦827 million

– Q2 2023: ₦2.03 billion

– Q3 2023: ₦2.8 billion

– Q4 2023: ₦1.95 billion

Strategic Power Exports Amid Domestic Shortages

Despite Nigeria’s inability to meet its domestic electricity demand, the country exports power based on strategic agreements with neighboring countries such as Niger, Togo, and Benin. However, over the years, these international consumers have not made adequate payments for the electricity exported to them from Nigeria.

NERC’s Comments on Non-Remittances

In the first quarter of 2023, NERC reported that no payments were made by the listed international customers against the cumulative $16.11 million invoice issued to them. The international customers include Paras-SBEE and Transcorp-SBEE from the Republic of Benin, Mainstream-NIGELEC from Niger, and Odukpani-CEET from Togo.

For bilateral customers, NERC highlighted that out of ₦842.38 million invoiced to eight bilateral customers in the Nigeria Electricity Supply Industry (NESI), only North South/Star Pipe remitted ₦15.38 million against its invoice of ₦24.69 million. This non-remittance trend has persisted across quarterly reports.

Quarterly Analysis of Payments

Q2 2023:

– International Customers: Only Transcorp-SBEE made a partial payment of $1.43 million against an invoice of $2.13 million. The remaining three international customers did not remit any payment for the $11.97 million invoiced.

– Bilateral Customers: Bilateral consumers paid a total of ₦816.66 million against a cumulative invoice of ₦2.845 billion.

Q3 2023:

– International Customers: None of the four international customers made any payment against the cumulative invoice of $11.16 million.

– Bilateral Customers: No payments were made by any of the 16 bilateral customers against the cumulative invoice of ₦2.814 billion.

Q4 2023:

– International Customers: No payments were made against the $12.02 million invoice.

– Bilateral Customers: No payments were made against the cumulative invoice of ₦1.952 billion.

Consumer Advocacy and National Concerns

Reacting to the non-remittance issue, Uket Obonga, National Secretary of the Nigeria Electricity Consumer Advocacy Network, criticized the situation, questioning the logic behind exporting electricity when a significant portion of Nigeria’s population lacks adequate power supply. He cited a World Bank report indicating that about 90 million Nigerians, out of a population of 220 million, are not connected to the national electricity grid. In comparison, China, with a population of around 1.4 billion, has about 68 million people without electricity.

Economic and Policy Implications

Obonga emphasized the contradiction in exporting electricity, a scarce commodity, when it is desperately needed domestically. He questioned the economic rationale behind such decisions, urging policymakers to reconsider the strategy of exporting power while a large number of Nigerians remain without access to electricity.

This situation calls for a re-evaluation of Nigeria’s power export agreements and a focus on improving domestic electricity supply to meet the needs of its citizens.