Benin and Togo owe Nigeria over $11 million for electricity supplied in the first quarter of 2025, according to data from the Nigerian Electricity Regulatory Commission (NERC). The debt stems from bilateral agreements under which Nigeria’s generation companies supply electricity to its neighbours. While Benin made a partial payment, Togo did not make any payments during the period, resulting in a combined debt exceeding $11 million.
Overall, Nigeria invoiced six international customers a total of $17.24 million for electricity exports in Q1 2025 but recovered only $5.8 million, representing about 34% of the billed amount. The Niger Republic was the only country to fully settle its invoice, paying $3.03 million.
The low recovery rate has raised concerns about the sustainability of Nigeria’s cross-border electricity trade, as defaults by neighbouring countries could worsen liquidity challenges facing the country’s generation and transmission companies.
Experts warn that unless payment enforcement is strengthened, continued defaults could discourage investments in Nigeria’s power sector, undermining efforts to expand electricity supply across West Africa.
With regional energy demand rising, Nigeria’s role as a power exporter will increasingly depend on ensuring timely payments from its customers to maintain the viability of cross-border electricity trade and support the growth of the country’s power sector.
