Three West African countries owe Nigeria N17.45 billion in electricity debt

Nigeria's electricity debt burden from neighbouring countries has hit N17.45 billion, with customers in Benin Republic, Togo and Niger Republic paying only 27.57% of their electricity bills in the first quarter of 2026. The Nigerian Electricity Regulatory Commission (NERC) disclosed this in its latest quarterly report, highlighting persistent payment challenges in the country's power export market.

Foreign customers paid only $4.82 million of $17.48 million billed

NERC's first-quarter 2026 report showed that international bilateral customers remitted just $4.82 million out of the total $17.48 million invoiced by the Market Operator. This left an outstanding balance of $12.66 million, equivalent to about N17.45 billion at an exchange rate of N1,378 per dollar.

The commission stated: "The three international bilateral customers being supplied by GenCos in the NESI made a payment of $4.82 million against the cumulative invoice of $17.48 million... translating to a remittance performance of 27.57 per cent."

The regulator noted that poor remittance from foreign customers remains a major contributor to the liquidity challenges facing Nigeria's electricity industry.

Some suppliers received zero payment

Paras-SBEE, which supplies power to the Benin Republic, recorded zero payment against its $1.94 million invoice. Paras-CEET, serving customers in Togo, also did not remit any amount despite receiving an invoice of $1.67 million.

Transcorp-SBEE (Ughelli), another supplier to the Benin Republic, paid just $0.90 million out of its $4.20 million bill, a remittance rate of 21.43%. Transcorp-SBEE (Afam 3) settled $1.13 million from its $2.90 million invoice, achieving 38.97% payment performance.

Odukpani-CEET, which supplies electricity to Togo, also failed to make any payment against its $2.29 million invoice.

Mainstream-NIGELEC, which exports electricity to the Niger Republic, emerged as the best performer among the international customers. It remitted $2.79 million out of $4.45 million, translating to a 62.70% payment rate.

Domestic customers performed better but Ajaokuta defaulted

Unlike their foreign counterparts, domestic bilateral customers recorded significantly stronger payment performance. NERC said they paid N5.82 billion out of the N6.12 billion billed during the first quarter, representing a 95% remittance rate.

However, Ajaokuta Steel Company Limited and its host community again failed to pay their electricity bills. The company made no payment against invoices of N676.88 million issued by the Nigerian Bulk Electricity Trading Plc (NBET) and N189.38 million issued by the Market Operator during the period.

Despite the poor performance on current invoices, NERC disclosed that several international customers made payments towards debts accumulated in previous quarters. Three international customers collectively paid $6.64 million to offset outstanding obligations. The payments included $4.05 million from Société Béninoise d'Energie Electrique (SBEE), $1.87 million from Mainstream-NIGELEC, and $720,000 from Paras-CEET.

What this means for Nigeria's power sector

The recurring non-payment by both international and some domestic customers continues to strain Nigeria's electricity market. The poor remittance performance of foreign customers raises concerns over the financial sustainability of the country's power export arrangements and adds to the liquidity pressures already facing the Nigerian Electricity Supply Industry.