Nigeria’s power sector, already under pressure from financing and infrastructure challenges, has been dealt another economic blow by its own regional electricity export arrangements.
According to the latest quarterly report by the Nigerian Electricity Regulatory Commission (NERC), three of Nigeria’s West African neighbours; Togo, Benin and Niger Republic, now owe Nigerian power companies a combined N25.36 billion (about $17.8 million) for electricity already supplied.
Across the third quarter of 2025, the Market Operator invoiced these international bilateral customers a total of $18.69 million for energy consumed under existing cross-border power agreements.
But only $7.125 million was remitted, leaving an unpaid balance of $11.56 million within the period. When combined with unresolved debts from prior quarters, the total outstanding amount has grown to over $17.8 million, roughly N25.36bn at current exchange rates.
The three entities identified in the report are Compagnie Énergie Électrique du Togo, Société Béninoise d’Énergie Électrique of Benin, and Société Nigérienne d’Électricité of Niger, all of whom purchase power from Nigerian generation companies (GenCos) through bilateral deals.
While international customers under-performed, domestic bilateral customers displayed a relatively stronger payment discipline.
NERC noted that local buyers settled N3.19bn of an invoiced N3.64bn, equivalent to roughly 87.6% remittance performance, markedly higher than their international counterparts.
The report highlights a persistent issue for Nigeria’s power markets: international remittances remain significantly lower, with only about 38% of invoiced value collected in the most recent quarter.
The ongoing non-payment by regional consumers adds fiscal strain on Nigeria’s already under-capitalised power sector, coming at a time when the government and regulators are pushing reforms to shore up investment, improve operational efficiency, and reduce sector debt.
The figures reflect broader challenges in cross-border electricity trade, a key component of the West African Power Pool (WAPP) initiative, and raise questions about enforcement mechanisms in bilateral energy agreements.
As Nigeria continues to rely on regional power exports, stakeholders say improved compliance and timely payment from international off-takers will be crucial to stabilise revenue flows and support long-term sector sustainability.
