Nigeria’s Power Sector Faces $8.84m Debt from International Customers – NERC Report
Nigeria’s electricity sector is grappling with mounting unpaid debts as international customers owe the country $8.84 million for power supplied in the fourth quarter of 2024, according to the latest report from the Nigerian Electricity Regulatory Commission (NERC).
The report reveals that six international bilateral customers, who purchase electricity from grid-connected Generation Companies (GenCos), were billed a total of $14.05 million by the Market Operator for services rendered during the period. However, they collectively paid only $5.21 million, leaving a significant outstanding balance.
Domestically, payment shortfalls persisted as well. Nigerian bilateral customers were invoiced N1.977 billion for electricity consumed in Q4 2024 but managed to pay only N1.252 billion, leaving a deficit of N724.44 million.
Adding to the financial strain, Nigeria’s electricity distribution companies (DisCos) recorded a revenue shortfall exceeding N146 billion in the same period. DisCos billed customers N658.4 billion but collected only N509.84 billion, resulting in a 77.44% collection efficiency—an improvement from the 74.55% recorded in Q3 2024.
The report also highlights that DisCos had an outstanding payable invoice of N408.86 billion for power purchases and services. This included N360.97 billion owed to the Nigerian Bulk Electricity Trading Company (NBET) and N47.89 billion for transmission and administrative services provided by the Market Operator. Of this total, DisCos remitted N378.93 billion, reflecting a 92.68% remittance performance, a notable increase from the 83.77% recorded in the previous quarter.
Despite receiving 7,420.58 gigawatt-hours (GWh) of electricity during the quarter, DisCos could only bill end-users for 6,207.84 GWh, leading to a billing efficiency of 83.66%, slightly higher than the 82.15% recorded in Q3 2024.
While improvements in revenue collection and remittance rates indicate some progress, the persistent shortfall and rising debts from both local and international consumers continue to threaten the financial sustainability of Nigeria’s power sector.
