Nigeria is owed N4.22b by Niger, lion share of N5.8b owed by neighbouring countries
By Jeph Ajobaju, Chief Copy Editor
Nigeria is owed N4.22 billion ($5.48 million at N769.27/dollar) by Niger Republic in power supply bill; the Nigerian Electricity Regulatory Commission (NERC) has disclosed in its 2023 first quarter (Q1 2023) report just released.
Niger’s debt is the lion share of the N5.8 billion owed by three neighbouring countries for power supply.
The report explained Niger’s state power firm, the Nigerien Electricity Society (NIGELEC), is yet to remit the $5.48 million invoice issued by the Nigerian Market Operator (MO).
“None of the underlisted international customers made any payment against the cumulative $16.11m invoice issued to them in 2023/Q1; Paras-SBEE ($3.46m), Transcorp-SBEE ($3.85 million), Mainstream-NIGELEC ($5.48m) and Odukpani-CEET ($3.32 million),” the report said.
“Out of N842.38m invoice issued by MO to all the eight (8) bilateral customers in the NESI, only North-South/Star Pipe made a remittance of N15.38m against its invoice of N24.69m.”
The NERC mandated the MO to invoke market rules to curtail payment default.
Nigeria’s power supply to Niger Republic was cut off on August 2 as part of sanctions against the military coup plotters in that country who toppled President Mohammed Bazoum.
NIGELEC is under contract with a power firm in Nigeria, Mainstream Energy, for the supply of electricity.
Nigeria also exports electricity to the Republics of Benin and Togo based on Transaction Service Agreements (TSAs).
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Nigeria exports N23b electricity to neighbouring countries while citizens lack supply
Nigeria’s neighbours owe it N5.8b in power bill
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Electricity export
Nigeria exported about N23.13 billion electricity to neighbouring countries in 2022, according to reporting by The PUNCH.
“Nigeria disconnected since Tuesday (last week) the high voltage line that carries electricity to Niger,” a report by AFP said, quoting industry sources through local production.
NIGELEC disclosed 70 per cent of Niger’s electricity in 2022 came from purchases from the Nigerian company, Mainstream.
Power is supplied to Niger Republic from Kainji dam in Nigeria’s Niger State based on an agreement Nigeria signed with Niger Republic to prevent it from damming River Niger upstream where Kainji gets water supply.
However, to free itself from energy dependence on Nigeria, Niger is working to complete its first dam by 2025.
Kandadji dam, located about 180 kilometres upstream from Niamey, is projected to generate 629 gigawatt-hours (gwh) of electricity yearly.
A report by the BBC said major cities in Niger Republic are facing rolling blackouts following last week’s coup.
Residents of Niamey, Maradi, and Zinder had power for about an hour at a time before it was switched off for up to five hours. Power cuts like these are unusual in Niger, which normally has regular and reliable supply.
Kunle Olubiyo, President of Nigeria Consumer Protection Network and Coordinator of Power Sector Perspectives, had disclosed the Economic Community of West African States (ECOWAS) would isolate Niger Republic from power supply.
“About 60 per cent of power supply to Niger comes from Nigeria. Just like organised labour usually shuts down the national power grid as part of negotiations when all appeals might have failed to achieve results (Tinubu) is the leader of ECOWAS at the moment,” he stressed.
“Disconnection of power supply is seen as a low-hanging fruit.”
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