Benin, Togo, and Niger are struggling to pay for electricity supplied by Nigeria, leaving a debt of about N17.45 billion in the first quarter of 2026.
According to the Nigerian Electricity Regulatory Commission, the three countries remitted only 27.57 percent of the $17.48 million billed to them during the period. That left an outstanding balance of $12.66 million, equivalent to N17.45 billion at the prevailing exchange rate.
Despite the arrears, Nigeria has continued to export electricity under bilateral agreements with generation companies in the Nigerian Electricity Supply Industry. Officials say the debts have become routine, adding pressure to a sector already facing liquidity challenges.
The commission noted that international customers performed far worse than domestic bilateral customers, who paid 95 percent of their invoices in the same quarter. The contrast highlights the financial strain of cross-border electricity deals.
A breakdown of payments showed that Paras-SBEE, which supplies Benin, failed to remit anything against its $1.94 million invoice. Paras-CEET, supplying Togo, also paid nothing despite receiving a $1.67 million bill.
Transcorp-SBEE, which supplies Benin from Ughelli, managed to pay $0.90 million out of its $4.20 million invoice, representing just 21.43 percent of its obligation. The weak performance underscores the challenge of enforcing payment discipline across borders.
Industry analysts say Nigeria’s continued exports, despite mounting arrears, reflect both regional energy cooperation and the country’s struggle to balance diplomacy with financial sustainability. They warn that unpaid debts risk undermining investment in the power sector and weakening confidence in the electricity market.
For many Nigerians, the issue raises questions of fairness, as domestic customers face strict enforcement while neighboring countries fall behind. The outcome of these bilateral arrangements will shape not only Nigeria’s energy future but also its regional partnerships in West Africa.
