Consumers Upset as Nigeria Exports N23.13bn Worth of Electricity while Dealing with Widespread Outages
Power consumers expressed their dissatisfaction on Wednesday with the export of approximately N23.13 billion worth of electricity from Nigeria to neighboring countries in 2022, despite the prevalent darkness experienced in many Nigerian communities.
The Nigerian Electricity Regulatory Commission (NERC) provided the latest data on remittances by international customers, revealing that Nigeria continued to export electricity to the Republics of Benin and Niger, as well as certain special customer categories.
The data indicated that the total value of exported electricity from Nigeria in 2022 amounted to $50.98 million (equivalent to N23.5 billion at the official exchange rate of N461/$ as of last year). However, international customers only remitted $32.69 million, which is equivalent to N15.1 billion.
This implies that a total of $18.29 million or N8.4 billion was not remitted during the period, while the special customers also failed to remit N792.6 million in the same period, as reported by the power sector regulator.
Despite explanations provided by officials at NERC and other power sector agencies regarding the export of power from Nigeria despite its inadequate supply within the country, electricity consumers expressed their disapproval.
Uket Obonga, the National Secretary of the Nigeria Electricity Consumer Advocacy Network (NECAN), criticized the decision, highlighting the large number of Nigerians who lack access to electricity. He questioned the economic sense of exporting a scarce commodity that is desperately needed within the country.
The NERC provided updates on the remittances made by special/cross-border customers in the fourth quarter of 2022. The report showed that Transcorp-SBEE and Mainstream-NIGELEC made partial remittances, while Paras-SBEE and Odukpani-CEET failed to remit the invoiced amounts.
Throughout the year, international customers in various categories consistently failed to remit the full amounts owed. The non-settlement of market obligations by these customers prompted the NERC to call for the activation of relevant safeguards.
Obonga argued that the export of electricity continues despite the fact that Nigerians have the capacity to pay for it. He emphasized that the joint monthly revenues from two or three power distribution companies would surpass the N23 billion earned from international customers throughout the year.
The export of electricity while grappling with widespread outages has led to frustration among local consumers who are eager for reliable power supply in their communities.
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