Niger Republic Owes Nigeria N4.22bn ($5.48m) for Power Supply
The Nigerian Electricity Regulatory Commission's latest Q1 report has unveiled that Niger owes Nigeria a sum of N4.22 billion ($5.48 million) for electricity supplied. In 2022, 70% of Niger's electricity was sourced from the Nigerian firm Mainstream, as indicated by a NIGELEC report – the exclusive electricity provider in Niger.
Electricity generation at the Kainji Dam in Niger State is transmitted to Niger, but the country is aiming to reduce its reliance on Nigerian energy by completing its own dam by 2025.
Despite a $5.48 million bill from the Nigerian market operator for power supply, the Nigerien Electricity Society, the state-owned power company of Niger, has reportedly not paid it.
The report highlighted, "None of the following international customers made any payment against the cumulative $16.11 million invoice issued to them in 2023/Q1; Paras-SBEE ($3.46 million), Transcorp-SBEE ($3.85 million), Mainstream-NIGELEC ($5.48 million), and Odukpani-CEET ($3.32 million). Out of the N842.38 million invoice issued by MO to all eight bilateral customers in the NESI, only North-South/Star Pipe made a remittance of N15.38 million against its invoice of N24.69 million."
In response to payment inconsistencies, the NERC directed the Market Operator to utilize clauses in the market regulations to address the payment issues of various market participants.
AFP reported that Nigeria cut off the high-voltage power line supplying electricity to Niger last week. This caused intermittent power supply to Niamey, Maradi, and Zinder for about an hour at a time, followed by up to five hours of blackout – an unusual occurrence in Niger where power supplies are usually stable.
Kunle Olubiyo, coordinator of Power Sector Perspectives and president of the Nigeria Consumer Protection Network, confirmed that the ECOWAS would disconnect Niger Republic from the energy grid. Olubiyo likened this disconnection to a "low-hanging fruit," explaining that approximately 60% of Niger's power supply originates from Nigeria.
The Kandadji Dam, situated about 180 km upstream of Niamey, is projected to generate 629 gigawatt-hours of energy annually.
Recent reports indicate that major cities in Niger are facing rolling blackouts due to last week's coup, according to a BBC story.
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