Chinedu Obieze
Nigeria is facing growing revenue losses in its power sector as neighbouring West African countries fail to fully pay for electricity supplied to them, raising concerns about the sustainability of cross-border energy trade.
Latest data from the Nigerian Electricity Regulatory Commission (NERC) shows that Benin, Togo, and Niger collectively owe Nigeria $9.55 million for electricity supplied in the fourth quarter of 2025.
According to the report, Nigeria issued a total invoice of $20.44 million to power utilities in the three countries during the period. However, only $10.89 million was paid, reflecting a remittance rate of just 53.28 per cent.
This means that nearly half of the billed amount remains unpaid, highlighting a persistent challenge in recovering revenue from international electricity customers.
The report indicates that the задолженность is spread across several bilateral supply agreements involving major power generation companies in Nigeria.
In Benin Republic, Société Béninoise d’Energie Electrique received electricity through Paras and Transcorp power plants located in Ughelli and Afam. While some payments were made, performance varied significantly across contracts.
For instance, the Transcorp Ughelli supply arrangement recorded one of the weakest payment rates, with only 12.30 per cent of the $3.74 million invoice settled. In contrast, the Afam 3 contract under Transcorp showed stronger compliance, with over 82 per cent of its invoice paid.
In Togo, Compagnie Energie Electrique du Togo was supplied power through Paras and Odukpani. While one of the agreements recorded moderate payment performance, another saw zero remittance despite an invoice of over $2 million.
Niger’s power utility, Société Nigerienne d’Electricite, recorded relatively better compliance, paying about 68.63 per cent of its $5.96 million invoice, the highest billed among the three countries.
Despite these partial payments, the overall shortfall remains significant, underscoring inefficiencies in Nigeria’s cross-border electricity payment structure.
Interestingly, the report noted that some payments were made toward outstanding debts from previous quarters. Benin’s utility cleared $3.54 million in arrears, while a domestic customer, APLE, paid N141 million for past invoices.
However, these repayments were not enough to offset the growing concerns over delayed or incomplete payments for current electricity supply.
In contrast to the weak remittance performance from international customers, domestic bilateral consumers within Nigeria showed stronger compliance.
Local customers paid N3.5 billion out of a total invoice of N4.17 billion, representing a remittance rate of 84.23 per cent. This indicates a significantly higher level of payment discipline compared to Nigeria’s regional electricity buyers.
Meanwhile, Ajaokuta Steel Company, classified as a special customer, failed to make any payment despite being billed N1.26 billion during the same period.
Energy analysts say the situation raises serious questions about Nigeria’s electricity export strategy, especially at a time when the country is still grappling with inadequate power supply at home.
They warn that continued non-payment by neighbouring countries could weaken the financial stability of power generation companies and discourage further investment in the sector.
The development also highlights the need for stricter enforcement of payment agreements, improved monitoring systems, and possible policy reforms to protect Nigeria’s energy revenue.
With over $9.55 million lost in just one quarter, stakeholders argue that addressing these payment gaps is critical to strengthening the country’s power sector and ensuring long-term sustainability.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.