Nigeria’s electricity exports to neighbouring West African countries are again under scrutiny after the Nigerian Electricity Regulatory Commission disclosed that Togo, Niger and Benin owe a combined $17.8 million for power supplied under bilateral arrangements, an amount equivalent to more than ₦25 billion at current exchange rates.
In its Third Quarter 2025 report, the regulator revealed that the three countries were invoiced a total of $18.69 million for electricity supplied during the quarter by Nigeria’s Market Operator. However, only $7.125 million was remitted within the period, leaving an unpaid balance of $11.56 million. When this is added to outstanding legacy invoices from previous quarters, the total debt rises to $17.8 million, or approximately ₦25.36 billion at an exchange rate of ₦1,425 to the dollar.
According to NERC, the international offtakers involved are Compagnie Énergie Électrique du Togo, Société Béninoise d’Énergie Électrique of Benin, and Société Nigérienne d’Électricité of Niger. These entities purchase electricity generated by grid-connected Nigerian generation companies and delivered through cross-border bilateral power supply agreements.
The commission noted that the remittance performance of the international customers during the third quarter was particularly weak. Payments of $7.125 million against invoices of $18.69 million translated to a remittance rate of just 38.09 per cent, meaning more than half of the amounts billed for the quarter remained unpaid at the end of the reporting period.
In addition to the current quarter’s shortfall, NERC disclosed that the three countries had accumulated legacy debts of $14.7 million from previous billing periods. While $7.84 million was paid toward these older obligations, a balance of $6.23 million remains outstanding, further compounding Nigeria’s exposure under the bilateral power arrangements.
By contrast, domestic bilateral electricity customers showed significantly stronger payment discipline. NERC reported that local bilateral customers remitted ₦3.19 billion out of the ₦3.64 billion invoiced to them during the same quarter, representing a remittance performance of 87.61 per cent. The commission also acknowledged that some domestic and international customers made payments toward outstanding invoices from earlier quarters during the review period.
Beyond bilateral customers, the regulator highlighted broader improvements in market-wide remittances. Nigeria’s 11 electricity distribution companies collectively paid ₦381.29 billion to the Nigerian Bulk Electricity Trading Plc and the Market Operator in the third quarter of 2025, out of a total invoice of ₦400.48 billion. This reflects a remittance performance of 95.21 per cent, suggesting stronger compliance within the domestic electricity value chain compared to cross-border transactions.
NERC explained that all figures cited in the report were based on reconciled market settlements submitted to the commission as of December 18, 2025. The data forms part of its statutory assessment of the commercial and financial performance of Nigeria’s electricity market, at a time when concerns are growing over the sustainability of power exports amid mounting foreign receivables and domestic supply challenges.
