Nigeria’s Market Operator (MO) has convened a meeting in Abuja with representatives from countries within the West African sub-region to discuss the complexities of cross-border energy transactions with a view to proffering solutions to streamline the process.
The forum, which serves as a platform for open dialogue and collaboration among key stakeholders in the West African Power Pool (WAPP), saw the participation of delegates from various Nigerian power generation companies, distribution companies, and eligible customers.
Also, representatives from neighbouring countries, including the Republic of Benin and Togo participated in the meeting.
At the meeting held recently, Nigeria’s Market Operator (MO), Engr. Dr. Edmund Eje, highlighted the remarkable progress made since the inception of the Transitional Electricity Market (TEM), stating that the TEM’s implementation has facilitated direct engagement between market participants and power generators, significantly enhancing the energy supply process.
Engr Eje who pointed out that there was a growing healthy collaboration between Nigeria and its neighbouring countries, noted that partnerships with Nigerian power suppliers have been established to meet the energy needs of Benin and Togo.
He noted that interactions among market participants are crucial towards creating a unified regional energy grid.
Clarifying the status of international debt in favour of the nation’s power sector, the MO noted that there were a lot of misconceptions arising from unconfirmed media reports that suggested money owed by international customers was substantial. Engr. Eje confirmed that Togo and Benin Republic have an outstanding of $1.714m to settle as at the time they were let off sovereign off-take of energy, while Niger Republic were not having any outstanding.
He urged all market participants to collectively approach the market’s challenges, seeking effective solutions to pave the way for continued growth and cooperation in the energy sector and encouraged a follow-up meeting within four weeks to give cross-border market participants the opportunity to address any remaining concerns and solidify energy transactions.
One of the primary discussion points during the meeting revolved around complaints received by the MO from various parties. Société Beninoise d’Énergie Electrique (SBEE), the energy provider from Benin Republic, filed a complaint regarding accountability on energy from Nigeria consumed by CEET and SBEE between October 2020 and February 2021.
Additionally, Transcorp Power, Nigeria, raised concerns about the low energy consumption levels by SBEE from May to July 2023.
Given the international nature of these transactions which often necessitate careful consideration, a thorough review was considered to ensure fairness and transparency, even though the market’s operational procedures typically allow for resolutions within 60 days of a transaction.
Participants at the meeting expressed their unwavering commitment to resolving these challenges and maintaining a seamless energy trading environment.
They also commended the Market Operator for his dedication to fostering cross-border energy cooperation, an initiative aimed at creating a unified regional energy market.
