Power exports under strain as Togo, Niger and Benin owe Nigeria ₦25.36bn for electricity
Persistent payment defaults by regional power buyers raise questions about the sustainability of cross-border electricity exports
Nigeria is grappling with persistent electricity shortages at home, yet neighbouring countries supplied through cross-border power arrangements are collectively owing the country ₦25.36bn for electricity already delivered. New data from the Nigerian Electricity Regulatory Commission shows that Togo, Niger and Benin have failed to fully pay for power supplied from Nigeria’s grid, raising fresh questions about the sustainability of electricity exports amid domestic supply constraints.
In its Third Quarter 2025 report, NERC disclosed that the three countries were invoiced a total of $18.69m for electricity supplied during the quarter but remitted only $7.125m, leaving an unpaid balance of $11.56m. When combined with outstanding invoices from previous quarters, the total debt owed by the international customers rose to $17.8m, which translates to ₦25.36bn at an exchange rate of ₦1,425 to the dollar.
Also Read: Nigeria’s economy stabilises on paper as poverty deepens, PwC warns
The regulator identified the defaulting international offtakers as Compagnie Énergie Électrique du Togo, Société Béninoise d’Énergie Électrique of Benin, and Société Nigérienne d’Électricité of Niger. These utilities purchase electricity generated by grid-connected Nigerian generation companies through bilateral cross-border arrangements.
According to NERC, the level of payment made by the three countries during the quarter reflected significant underperformance. “The three international bilateral customers being supplied by GenCos in the NESI made a payment of $7.12m against the cumulative invoice of $18.69m issued by the MO for services rendered in 2025/Q3, translating to a remittance performance of 38.09 per cent,” the commission stated. This meant that more than half of the power supplied during the period remained unpaid by the end of the quarter.
The report also showed that the international customers carried forward unpaid invoices from earlier periods. NERC disclosed that they paid $7.84m towards outstanding obligations from previous quarters, leaving a balance of $6.23m in legacy debt. The combined effect of unpaid current and past invoices pushed total outstanding obligations to $17.8m.
The disclosure comes at a time when Nigeria continues to face chronic electricity supply challenges, with many households and businesses experiencing limited grid availability and high dependence on self-generation. Power exports, while part of regional energy cooperation frameworks, draw from the same grid that struggles to meet domestic demand, making payment discipline by international customers a sensitive issue.
In contrast, domestic bilateral customers showed stronger payment performance during the same period. NERC reported that local bilateral customers remitted ₦3.19bn out of the ₦3.64bn invoiced to them in Q3 2025, representing a remittance rate of 87.61 per cent. “The domestic bilateral customers made a cumulative payment of ₦3.19bn against the invoice of ₦3.64bn issued to them by the MO for services rendered in 2025/Q3, translating to 87.61 per cent remittance performance,” the commission said.
NERC noted that some customers, both international and domestic, made payments toward outstanding invoices from earlier quarters. “It is noteworthy that some bilateral customers also made payments for outstanding MO invoices from previous quarters, as follows: the MO received US$7.84m from the international bilateral customers and ₦1.3bn from the domestic bilateral customers,” the report stated.
Beyond bilateral customers, the commission disclosed that Nigeria’s electricity distribution companies recorded relatively strong remittance performance during the quarter. The 11 DisCos collectively paid ₦381.29bn to the Nigerian Bulk Electricity Trading Plc and the Market Operator out of a total invoice of ₦400.48bn, translating to a remittance performance of 95.21 per cent.
NERC said the figures were based on reconciled market settlements submitted to the commission as of December 18, 2025, as part of its statutory assessment of the commercial performance of the electricity market.
The growing debt owed by international power buyers highlights the financial pressures within Nigeria’s electricity value chain, particularly as the country balances regional power exports with the urgent need to stabilise supply and revenue at home. With generation, transmission and distribution already under strain, unpaid export bills add another layer of complexity to an electricity sector still struggling to deliver reliable power to Nigerians.
