KEY POINTS
- Benin and Togo failed to remit over half of power bills to Nigeria.
- NERC reports a 51.33 percent payment rate for international customers.
- Unpaid invoices threaten the liquidity of Nigeria’s electricity sector.
Neighbouring West African countries Benin and Togo have failed to settle more than half of their electricity debts to Nigeria for power exported in the second quarter of 2025, according to new data from the Nigerian Electricity Regulatory Commission (NERC). The shortfall underscores persistent payment challenges in regional energy trade as Nigerian generators continue to supply power beyond its borders.
Poor remittance from regional buyers
In its Second Quarter 2025 Market Performance Report, NERC disclosed that six international bilateral customers who receive electricity from Nigerian generation companies paid only $9.01 million out of a total $17.54 million invoice issued by the Market Operator for services rendered within the quarter. That left an outstanding balance of about $8.53 million, reflecting a remittance performance of 51.33 percent.
A breakdown of the figures showed that Benin’s Société Béninoise d’Énergie Électrique (SBEE), Togo’s Compagnie Energie Electrique du Togo (CEET), and Niger’s NIGELEC were among the main international buyers. While Mainstream Energy Solutions received $2.59 million out of a $3.71 million invoice issued to NIGELEC, translating to a 69.8 percent payment, CEET failed to remit any part of its $4.31 million obligation. SBEE, which buys electricity from Transcorp and Paras Energy, also left part of its payment unsettled.
Benin and Togo electricity debt increases
According to NERC, only Transcorp’s $5.47 million transaction with SBEE was fully paid. Other bilateral contracts, including Paras–SBEE, Paras–CEET, and Odukpani–CEET, recorded zero remittance for the period. On the domestic side, bilateral customers made a cumulative payment of ₦1.4 billion out of ₦2.8 billion invoiced, amounting to a 50.10 percent payment rate.
The regulator added that a domestic bilateral customer, Trans-Amadi (OAU/FMPI), made partial settlements for older invoices outside the reporting quarter, remitting ₦10.53 million for outstanding obligations.
According to Punch, NERC warned that the recurring shortfall in payments from both international and domestic buyers continues to strain the liquidity of the Nigerian Electricity Supply Industry. The report noted that sustained remittance failures weaken the financial viability of generation companies and the Market Operator, both of which depend on timely payments to maintain grid stability and cross-border power supply.
