Critical Update: Nigeria Electricity Debt Togo Niger Benin Hits $20M in Six Months
The persistent failure of neighboring countries to settle their power bills has once again brought the fragility of Nigeria’s regional electricity commitments into sharp focus. A recent regulatory report reveals that international bilateral customers in Togo, Niger, and Benin collectively owe nearly $20 million for electricity supplied between January and June 2025.
This massive financial liability undermines the stability of Nigeria’s power market and perpetuates a worrying trend of non-compliance among key regional partners. The Nigerian Electricity Regulatory Commission (NERC) has since issued a stern warning, stressing the urgent need for intervention from relevant federal government authorities to resolve the crisis.
The Breakdown of the $19.97 Million Nigeria Electricity Debt
According to data released by NERC, the total cumulative invoice issued to international customers for the first two quarters of 2025 amounted to $34.78 million. However, only $14.81 million of that sum was paid, leaving a staggering shortfall of $19.97 million.
The specific utilities responsible for this debt include the Société Béninoise d’Énergie Électrique (SBEE) in Benin, the Compagnie Energie Electrique du Togo (CEET) in Togo, and the Société Nigerienne d’Electricité (NIGELEC) in the Niger Republic. The non-payment is not uniform across the board. For instance, the report notes that Paras-SBEE failed to remit any portion of its $5.19 million total invoice for the period. Similarly, Paras-CEET paid only $0.63 million out of a cumulative invoice exceeding $3.94 million.
The situation is far from new. The total cumulative Nigeria electricity debt Togo Niger Benin and other regional power customers have accrued historically exceeded $100 million as of late 2024, illustrating a systemic challenge in regional power distribution agreements. [Updated: World Bank West Africa Power Pool (WAPP) Report, 2024]
Domestic Payments and Power Sector Instability
The international debt issue compounds the significant financial challenges facing Nigeria’s power sector domestically. During the same January to June 2025 period, Nigerian electricity consumers defaulted on payments totaling N368.26 billion. While the 11 Distribution Companies (DisCos) managed to collect N1.11 trillion, the overall billed amount was N1.48 trillion, indicating poor payment compliance both at home and abroad.
Industry expert Dr. Aminu Bello suggests that the instability in payment flows directly impacts the viability of the entire grid. “The market operators rely on timely remittances to pay generation companies (GenCos) and maintain infrastructure. When large, guaranteed customers like neighboring nations default, the entire value chain suffers. It’s an issue of economic diplomacy that requires swift, high-level negotiation.”
A Strategic Move to Enhance Grid Supply
In a related but positive development for the nation’s energy future, Genesis Energy and the Nigerian National Petroleum Company Limited (NNPCL) announced a partnership to address domestic power shortages. This collaboration focuses on integrating excess power generated from the Port Harcourt Refining Company (PHRC) into the national grid.
The initiative involves Genesis Energy, which operates the nation’s largest licensed private off-grid clean power plant at 84 megawatts (MW) within the refinery complex. This power, initially used to sustain refinery operations and reduce dependence on expensive diesel, will now boost the national supply. The Minister of Power, Adebayo Adelabu, commended the project, calling it a proof of concept for leveraging excess capacity to enhance grid stability and expand electricity access nationwide.
Conclusion: The Path to Regional and Domestic Energy Security
While the NNPCL and Genesis Energy partnership marks a strong step toward domestic energy optimization, the unresolved Nigeria electricity debt Togo Niger Benin issue remains a financial anchor weighing down the Nigerian Electricity Supply Industry (NESI). Addressing the persistent non-payment trend through firm, transparent, and enforceable bilateral agreements is an essential step toward achieving both regional energy integration and domestic sector liquidity.
❓ FAQ SECTION
Q: Why do Togo, Niger, and Benin receive electricity from Nigeria? A: These nations, along with other neighbors, are part of the Economic Community of West African States (ECOWAS) and the West African Power Pool (WAPP) initiative. This is a regional effort to promote power exchange and stability across member states. The agreement often sees Nigeria supplying excess capacity from its gas-fired generating plants. The $20 million shortfall for Nigeria electricity debt Togo Niger Benin highlights the financial challenges of these regional power sales.
Q: What is the NERC non-payment trend? A: The NERC non-payment trend refers to the persistent issue where companies or utilities in neighboring countries (like SBEE and CEET) fail to fully remit payments for the electricity supplied by Nigerian generation companies. NERC frequently reports these arrears, which strain the liquidity of Nigeria’s internal electricity market.
Q: Which specific companies are responsible for the debt? A: The primary companies cited in the NERC report are Société Béninoise d’Énergie Électrique (SBEE) from the Republic of Benin, Compagnie Energie Electrique du Togo (CEET) from Togo, and Société Nigerienne d’Electricité (NIGELEC) from the Niger Republic.
Q: Is the $20 million the total amount owed by international customers? A: No, the $19.97 million figure represents the debt accrued only in the first six months (Q1 and Q2) of 2025. The total cumulative debt owed by these and other regional power customers is historically much higher.
Q: How is the Port Harcourt Refinery linked to Nigeria’s power grid? A: The Port Harcourt Refining Company (PHRC) has an Independent Power Plant (IPP) operated by Genesis Energy. This plant, which is 84MW in capacity, typically powers the refinery. A new partnership with NNPCL aims to integrate the excess power generated by this facility into the national grid to boost domestic supply.
Q: What are the consequences of these non-payments? A: The failure of international customers to pay creates a major revenue gap, which directly impacts the ability of the Nigerian power sector to pay GenCos, invest in necessary infrastructure upgrades, and cover the cost of gas supply. Ultimately, this threatens the stability and future expansion of Nigeria’s national grid.
