The Presidency on Tuesday gave reasons why the country still exports electricity to Benin and Niger Republics in spite of their indebtedness to the country.
The Senior Special Assistant to the President on Media and Publicity, Garba Shehu, who gave the explanation in a statement, said Nigeria entered electricity power export agreements with some of her neighbouring countries so that they would not build dams on the path of River Niger.
The country, he said, is in bilateral agreements with Republic of Togo, Benin Republic and Niger Republic causing Nigeria to sell electricity to the countries.
River Niger courses through these countries.
Shehu disclosed that the Niger Republic and Benin Republic owe the country $20million.
He said while Niger owes $16 million, Benin owes $4 million, adding that when converted, it amounts to about N1.2billion.
The statement noted that the actual cost of electricity generated within 2018-2019 by all the electricity generation companies in the country was about N1.2 trillion ($4 billion).
The explanation was in reaction to a news report by a national newspaper which raised questions as to why Nigeria was selling electricity to other countries on credit while most parts of the country are in darkness.
The report alleged that the trio of Togo, Benin and Niger were owing Nigeria to the tune of $81.48 billion for electricity purchased.
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However, Shehu who debunked the report, described it as hyperbolic and terribly misleading.
He noted that “apart from the fact that the figure quoted was far from accurate, out-dated and not reflective of the current reality, the overall cost of power generated and sold during the period covered by the report was not anywhere close to what was mentioned by the paper. ”
The statement read in part: “The actual cost of electricity generated within the said timeframe (2018-2019) by all the electricity generation companies in Nigeria was about N1.2 trillion ($4 billion).
“Over 90per cent of the electricity generated was distributed and consumed by consumers across the 11 electricity distribution companies in the country.
“Power exported to Niger, Benin and Togo based on Multilateral Energy Sales Agreement with the Government of Nigeria is on the basis that they would not dam the waters that feed our major power plants in Kainji, Shiroro and Jebba.
“As of the last review in 2019, the amount of indebtedness to all three customers stood at $69 million, subsequent upon which several payments were made to NBET. Much of this has been repaid by the debtor nations.
“As of today, Niger owes only $16 million and Benin, $4 million, adding up to the Naira equivalent of about N1.2billion.
“The essence of said bilateral agreements, by which we give them power and they do not build dams on the River Niger means that Nigeria and her brotherly neighbours had avoided the unfolding situation of the Nile River between the sovereign states of Ethiopia, Sudan and Egypt.”