N5.8bn electricity debt: Stakeholders kick over sustenance of electricity supply to Togo, Niger, Benin
Abimbola Abatta and Ariemu Ogaga
The Federal Government has received knocks and condemnation owing to its continuous export of electricity to Togo, Niger, Benin despite the inability of these countries to pay N5.8bn electricity debt and failure of the federal government to settle $1billion legacy debt being owed suppliers of natural gas.
According to the report for 2020 released by the Nigerian Electricity Regulatory Commission (NERC), the companies for each of the countries are Societe Nigerienne d’electricite (SNE), Societe Beninoise d’Energie Electrique (SBEE) and Compagnie Energie Electrique du Togo (CEET) respectively.
The remittances showed that the Nigerian Market Operator (MO) gave the countries N16.31bn from which they paid N10.45bn for the services received from MO, while N5.86bn was outstanding.
The condemnation is coming amid the government’s failure to pay up the $1bn legacy debts owed gas producers for gas supplied to thermal power generating companies.
Nigerian NewsDirect reports that the legacy debts amount to about $1 billion.
Recall that gas producers, through the Managing Director of Shell Gas Limited and President of the Nigerian Gas Association (NGA), Mr. Ed Ubong, had registered their displeasure over the debt the Federal Government is owing them.
Ubong who disclosed this at the recent Nigerian Oil and Gas Conference and Exhibition (NOG) 2022 in Abuja, said that defraying the debt in addition to introducing a free market pricing regime for the gas sector would guarantee the continuous operation of thermal power generating companies in the country.
However, in an attempt to justify why Nigeria exports electricity to Niger, Benin, and Togo, the Transmission Company of Nigeria (TCN) has said the deal provides avenue to earn more foreign exchange for national development.
Managing Director, TCN, Sule Abdulaziz, confirmed this recently at the Nigerian Power Consumers Forum that, “Nigeria, through TCN, had been exporting electricity to Niger, Benin and Togo under a country-to-country arrangement.”
Abdulaziz, who is also the Chairman, Executive Board of West African Power Pool (WAPP), said TCN has deployed a high technology scheme as a stop-gap solution called Internet of Thing (IoT) and Virtual Private Network (VPN) to improve the national grid.
The technology, according to him, would improve real-time operations of the national grid, pending the deployment of a long-term network automation system.
In his words, “We have gone far with the procurement of new Supervisory Control and Data Acquisition (SCADA)/Energy Management System (EMS) schemes, but we felt as a responsible company that is waiting for the new SCADA, we can deploy a stop-gap technology which we have understudied in other countries to be very efficient in boosting real-time electricity grid monitoring.”
The TCN boss said that with the improved collaboration of other players in the electricity value chain, the company had been able to reduce cases of system collapse.
Abdulaziz noted that TCN was building two new National Control Centres in Abuja and Osogbo which would further improve the robustness of the Nigerian electricity grid.
According to him, the National Control Centre and other technology systems will improve the stability of the national grid.
Meanwhile, in reaction to the development, stakeholders have stressed that Nigeria has refused to see that it does not have the financial muscles and wealth it used to pride in.
In a chat with Nigerian NewsDirect on Sunday, an energy Agroconsultant and foremost Nigeria Bamboo Expert, Mr Eleojo Joseph faulted the continued implementation of the bilateral agreement, describing the situation as ‘father Christmas attitude gone wrong.’
According to him, “The legacy debt and continuous supply of electricity to Togo, Benin and Niger is actually the fallout of bilateral relations we had with these countries in the 1970s during the Gowon administration and our ‘Father Christmas’ attitude gone wrong.
“We had an understanding with Niger Republic not to dam the River Niger due to the effect it will have on us in Nigeria and in return we will dam it on our side and in return supply them electricity and they pay an agreed fraction of the bill.
“What happened over the years that Niger Republic and the other countries are owing us $1bn is due to incompetence, corruption and what I termed ‘dirty bureaucracies.’
“River Niger route is from Mali-Niger-Benin then Nigeria. Why Togo? So you can clearly see the Father Christmas mentality by Nigeria. Nigeria has refused to realise that it does not have the financial muscles of the 1970s anymore and still deluding herself as a rich nation. A pointer is the vehicles bought for Niger Republic lately.
“It is about time Nigeria call a meeting with these countries and let them know the true realities on ground. In a situation whereby the electricity supply is not even enough for local consumption and you allow yourself to be blackmailed by Niger and Benin Republic on the damage for electricity supply? It is about time we review some of these agreements and come up with a more practical solutions. Why on earth are we selling electricity to Togo?
“Importance of electricity to the economy: The importance of electricity cannot be over emphasized. What can anybody or economy do without electricity? Electricity is life. Electricity and water goes hand in hand. With electricity everything will work seamlessly. The continuous rise of the dollar to Naira is a fallout of lack of production at home. An economy that is not producing is a consuming one. A consuming economy is a dying economy,” he stated.
On his part, CEO Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said effective engagement among countries would yield positive outcomes.
According to him, “It is important to situate the matter in a proper context. The whole idea of exporting electricity to these countries was to prevent the countries from contructing dams along the river niger which is the main feeder of our hydro power plants in the country.
“It was a compromise reached in time past. But this should not be a reason for the countries to fail in their obligations to Nigeria.
“I believe an effective engagement of these countries should yield positive outcomes,” he stated.
