Abuja, January 9, 2026 – The Nigerian Electricity Regulatory Commission (NERC) has revealed that three West African neighbours—Togo, Benin Republic, and Niger Republic—owe Nigeria approximately $11.57 million for electricity supplied during the third quarter of 2025 under bilateral contracts.
According to NERC's Third Quarter 2025 report, the Market Operator (MO) issued invoices totaling $18.69 million to these international customers for power supplied by Nigerian Generation Companies (GenCos). However, only $7.12 million was remitted, resulting in a low remittance performance of 38.09 percent.
“The three (3) international bilateral customers being supplied by GenCos in the NESI made a payment of $7.12 million against the cumulative invoice of $18.69 million issued by the MO for services rendered in 2025/Q3, translating to a remittance performance of 38.09%,” the report stated.
The international offtakers are:
- Compagnie Énergie Électrique du Togo (CEET)
- Société Béninoise d’Énergie Électrique (SBEE) of Benin Republic
- Société Nigérienne d’Électricité (NIGELEC) of Niger Republic
In contrast, domestic bilateral customers demonstrated stronger compliance, remitting ₦3.19 billion out of ₦3.64 billion invoiced for the same period, achieving an 87.61 percent remittance rate.
The report also noted that some bilateral customers settled portions of arrears from previous quarters. International customers paid $7.84 million toward legacy invoices of $14.7 million, leaving an outstanding balance of about $6.23 million from prior periods. Domestic customers remitted ₦1.29 billion toward past dues.
When combining the Q3 shortfall of $11.57 million with lingering legacy debts, the total outstanding from these neighbours exceeds $17.8 million, equivalent to over ₦25 billion at prevailing exchange rates.
This persistent low remittance from international customers raises concerns about revenue losses in Nigeria's electricity supply industry (NESI), potentially impacting GenCos' liquidity and the sector's overall financial health. Analysts note that these bilateral exports, facilitated through interconnections under the West African Power Pool (WAPP), are meant to generate foreign exchange for Nigeria but have been hampered by payment delays in recent years.
The report highlighted another area of concern: the complete non-payment by a designated special customer, Ajaokuta Steel Company Limited and its host community. Classified under special arrangements, this entity failed to remit any funds toward a ₦1.03 billion invoice from Nigerian Bulk Electricity Trading (NBET) Plc and an additional ₦100 million from the MO during Q3 2025.
“This continues a longstanding trend of non-payment by this customer, and the Commission has communicated the need for intervention on this issue to the relevant federal government authorities,” NERC stated, calling for urgent federal action to resolve the impasse.
The Ajaokuta issue underscores broader challenges in recovering costs for subsidized or strategic supply arrangements, further straining market settlements.
Overall, the Q3 2025 report paints a picture of improving domestic remittances— with the 11 Distribution Companies (DisCos) achieving a 95.21 percent remittance rate to NBET and the MO—but persistent vulnerabilities from international and special customers. NERC emphasized the need for enhanced enforcement of bilateral contracts and government intervention to safeguard sector sustainability.
These revelations come amid ongoing efforts to stabilize Nigeria's power sector, including metering initiatives and tariff adjustments. The low international remittances highlight the risks of cross-border energy trade in the region, where payment discipline varies significantly.
As Nigeria continues to export power to support regional integration, stakeholders urge diplomatic engagements to ensure timely settlements and protect national revenue interests.
