The Nigerian Power Market (NEM) sent a bill for N16.31bn to the Republic of Niger, the Republic of Benin, and the Republic of Togo in 2020, but the three countries did not pay off their N5.86bn electricity debt at the time.
The Nigerian Electricity Regulatory Commission (NERC) 2020 report names the Societe Nigerienne d’electricite (SNE), Societe Beninoise d’Energie Electrique (SBEE), and Compagnie Energie Electrique du Togo (CEET) as the businesses responsible for supplying electricity in each country.
According to the transfers, Nigeria’s MO paid out a total of N16.31 billion to the countries, of which they remitted N10.45 billion to MO in exchange for the services they had received. This left an outstanding balance of N5.86 billion.
Ajaokuta Steel Company Ltd and its host community were exempt from paying for the N1.08bn in energy they used since they are considered a “special client” in Nigeria. The company owed N930m to Nigerian Bulk Electricity Trading (NBET), and MO owed N150m. The report from NERC stated, “MO and NBET must activate the requisite protections against prolonged non-settlement of market obligations by these market players.”
In 2020, NERC also renewed three existing generation licenses and issued five new ones, adding a total of 667.70 MW to the grid. In comparison to the 346MW permitted by the previously valid licenses, the new ones allow for an additional 235MW. It also certified 17 meter service providers and approved 33 meter asset providers (MSPs).
There was a 60.4% increase from 2019’s 334,896 meter installations to 2020’s 537,400, according to the report on metering.
Despite this, one of the biggest problems in the sector is the massive metering gap for end-use consumers. With a total of 11,841,819 (11.8 m) users in 2020, only 4,666,191 (4.6 m), or 39.40%, had meters installed.
“Therefore, 60.60 percent of the registered power users are on approximated billing,” it said.