Nigeria’s neighbours owe, even as it does not produce enough for citizens
By Jeph Ajobaju, Chief Copy Editor
Nigeria’s neighbours – Niger Republic, Benin Republic, and Togo – failed to pay N5.86 billion for power consumed in 2020 out of a N16.31 billion invoice issued by the Nigerian Electricity Market (NEM).
A report just released by the Nigerian Electricity Regulatory Commission (NERC) listed the debtor electricity firms in the countries as
- Niger Republic – Societe Nigerienne d’electricite (SNE)
- Benin Republic – Societe Beninoise d’Energie Electrique (SBEE)
- Togo – Compagnie Energie Electrique du Togo (CEET)
The report shows the Nigerian Market Operator (MO) billed the countries N16.31 billion out of which they paid N10.45 billion, leaving a balance of N5.86 billion.
Ajaokuta Steel Company, termed a special customer in Nigeria, and its host community also did not pay one kobo from their N1.08 billion bill in 2020.
The invoice from the Nigerian Bulk Electricity Trading (NBET) to Ajaokuta Steel was N930 million, that of MO N150 million.
NERC recommended in the report that “MO and NBET must activate the relevant safeguards against continued non-settlement of market obligations by these market participants.”
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New power licences
NERC issued five new power generation licences and renewed three others in 2020 which would add 667.70 megawatts (mw) to the national grid. The new licences can generate 235 mw and the renewed ones 346 mw, per Daily Trust.
NERC also gave approval to 33 Meter Asset Providers (MAPs) and certified 17 Meter Service Providers (MSPs).
The report said 537,400 meters were installed for consumers in 2020, which was 60.4 per cent more than 334,896 installed in 2019.
However, the huge metering gap for end-use customers is still a key challenge in the industry.
Registered customers grew to 11,841,819 in 2020 but only 4,666,191 or 39.40 per cent were metered.
“Therefore, 60.60 per cent of the registered electricity customers are on estimated billing contributing to apathy toward payment for electricity bills,” the report said.