The Nigerian Electricity Regulatory Commission (NERC) has disclosed that the Republics of Benin and Togo are indebted to Nigeria to the tune of eight point five million dollars for electricity supplied through the international grid connection. The commission stated that the debt represents outstanding payments from power exported to the two West African nations during the second quarter of 2024.
According to NERC’s second-quarter report, the electricity was supplied to both countries through the Transmission Company of Nigeria (TCN) and the Nigerian Bulk Electricity Trading Company (NBET) under existing bilateral agreements. The report noted that while some payments were received, the two countries have failed to fully settle their obligations, resulting in the accumulation of arrears.
The commission explained that the export of electricity to neighbouring countries forms part of regional energy cooperation under the West African Power Pool (WAPP) initiative. The arrangement, it added, is aimed at promoting energy integration and stability within the sub-region, with Nigeria serving as a major supplier due to its generation capacity.
NERC, however, expressed concern over the slow pace of debt repayment by Nigeria’s power export customers, warning that such delays could affect the country’s ability to sustain cross-border energy trade. The commission emphasized the need for prompt settlement of outstanding bills to ensure the financial health of Nigeria’s electricity market and guarantee continuous supply to both domestic and foreign consumers.
The report also highlighted that the total value of electricity exported during the period stood at fourteen point one million dollars, of which only five point six million dollars was remitted by international customers. This, NERC said, poses a challenge to the liquidity of the sector and undermines efforts to improve power generation and distribution across the country.
Industry analysts have urged the federal government to strengthen bilateral payment mechanisms and enforce stricter terms in international power trade agreements. They argued that while regional electricity export boosts Nigeria’s diplomatic influence and revenue potential, unpaid debts could strain local supply and discourage investment in the energy sector.
NERC reaffirmed its commitment to ensuring transparency and accountability in electricity transactions, both locally and internationally. The commission assured Nigerians that it is working with relevant stakeholders to recover the outstanding payments and enhance the efficiency of power trade under the West African Power Pool framework.
