Niger Republic owes Nigeria N4.22bn in unpaid electricity bill – NERC, as sanctions toughen
Niger Republic owes Nigeria a total of N4. 22 billion representing bill for electricity consumed for the first quarter of 2023, according to the Nigerian Electricity Regulatory Commission (NERC).
NERC’s Q1 2023 report published, recently indicated that the West African neighbours owed the Nigerian agency, US$5.48m for electricity supplied (representing N4.22 billion at the exchange rate of $/N769.27).
According to the report, Niger’s state power firm, Nigerien Electricity Company (Nigelec ) was yet to remit the $5.48m invoice issued by NERC to it for power supply by the Nigerian market operator.
“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).
“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,” it stated.
The NERC mandated the Market Operator to invoke the provision of the market rules to curtail the payment indiscipline being exhibited by the various market participants.
Reports said that the power supply from Nigeria to the Republic of Niger was stopped on August 2.
However, whether the disconnection of electricity supplies was due to backlog of unpaid bills or in compliance with the directive of the Economic Community of West African States (ECOWAS) for sanction on Niger Republic over the July 26 coup which ousted civilian president, Mohammed Bazoum, is still unknown.
Nigerien Electricity Company (Nigelec) of Niger Republic, penultimate Wednesday, confirmed that Nigeria has cut electricity supply to them, in line with the sanctions decided by the sub-regional body, the Economic Community of West African States (ECOWAS) following last week’s coup in the country which ousted President Mohamed Bazoum.
“Nigeria disconnected since yesterday (Tuesday) the high voltage line that carries electricity to Niger,” the source said. A Nigelec agent for his part indicated that the capital, Niamey, was “supplied thanks to local production”.
In addition to an earlier one-week ultimatum to restore constitutional order and the suspension of financial transactions with Niger, ECOWAS decreed the freezing of “all service transactions, including energy transactions”.
According to a report by Nigelec, the country’s sole supplier, in 2022, 70% of Niger’s share of electricity came from purchases from the Nigerian company Mainstream.
Many neighbourhoods in the city of Niamey are normally subject to power cuts and Nigeria’s decision will aggravate this situation.
To free itself from its strong energy dependence on neighbouring Nigeria, Niger is working to complete its first dam by 2025, on the river of the same name. Some 180 km upstream from Niamey, the Kandadji dam should generate 629 gigawatt hours (GWh) annually.
Niger is dependent on its foreign partners in many areas.
The sanctions will hurt our country very badly,” Nigerien Prime Minister Ouhoumoudou Mahamadou said on France 24, Sunday, as sanctions are increasing internationally.
Meanwhile, President of Nigeria Consumer Protection Network and Coordinator, of Power Sector Perspectives, Kunle Olubiyo, confirmed that ECOWAS would isolate Niger Republic from the electricity 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, Mr President (Tinubu) is the leader of ECOWAS at the moment.
“Disconnection of power supply is seen as a low-hanging fruit,” he stated.
