The Nigerian Electricity Regulatory Commission (NERC) has reported that international electricity customers from Niger, Benin Republic, and Togo collectively owe Nigeria $5.79 million for electricity supplied during the second quarter of 2024. This outstanding debt has raised concerns about the financial stability of Nigeria's electricity sector and its ability to meet domestic needs.
According to NERC's latest quarterly report, the total invoice issued to these international customers amounted to $15.60 million. However, only $9.81 million was paid, resulting in a remittance performance of approximately 62.88%.
The cumulative debt of $5.79 million translates to approximately N9.41 billion at the current exchange rate of N1,626.32 per dollar as of October 10, 2024.
This situation follows a troubling trend, as these countries had previously failed to settle a combined debt of $14.19 million for the first quarter of 2024. The persistent non-payment from international customers poses significant challenges for Nigeria's electricity market operator and raises alarms about the sustainability of electricity exports to neighboring countries.
In light of these developments, NERC has emphasized the need for immediate action to address the ongoing financial obligations of these international customers. The commission has also noted that domestic bilateral customers similarly failed to remit N695.4 million out of a total bill of N1.99 billion during the same period.
The Nigerian government has been compelled to reconsider its approach to electricity exports, implementing measures that prioritize domestic consumption over international sales. As part of this strategy, the government has directed that no more than 10% of generation capacity be allocated to international off-takers over the next six months.