Nigeria says it is owed more than $11 million by Benin and Togo for electricity supplied in the first quarter of 2025. This is according to the Nigerian Electricity Regulatory Commission (NERC).

Despite receiving stable electricity through bilateral deals with Nigerian generation companies, both countries paid only a small part of their bills. Togo made no payments at all, while Benin made a partial payment, leaving a combined debt of over $11 million.

In total, Nigeria invoiced six international electricity customers $17.24 million during Q1 2025 but recovered just $5.8 million — about 34%. Only Niger Republic settled its invoice in full, paying $3.03 million.

The shortfall, especially from Benin and Togo, has raised concerns about the sustainability of Nigeria’s cross-border electricity trade.

Reports state that within Nigeria, while some industrial customers paid their electricity bills in full, many others defaulted or paid partially, leaving unpaid invoices worth hundreds of millions of naira.

NERC noted that the issue of non-payment is not limited to international partners. It also includes major domestic government-owned entities, calling it “a long-standing problem requiring urgent reform.”

The Commission warned that “the poor payment culture of these countries threatens the financial stability of Nigeria’s power market.” It added that “the persistent failure to meet payment obligations undermines confidence in bilateral power deals.”

Experts say that without stronger enforcement, these defaults — both local and cross-border — could discourage future investment in Nigeria’s power sector and worsen liquidity challenges for electricity generation and transmission companies.

As energy demand rises across West Africa, Nigeria’s position as a regional power supplier is under growing pressure to ensure payment agreements are respected. (Business Insider)