Nigeria’s Electricity Debt: Benin and Togo Owe Over $11m for Q1 2025 Supply
Nigeria is owed over $11 million by Benin and Togo for electricity supplied in the first quarter of 2025, according to the Nigerian Electricity Regulatory Commission (NERC). The debt arises from bilateral agreements between Nigeria and its neighboring countries, where Nigeria’s generation companies supply electricity to these nations.
The breakdown of the debt shows that Togo made no payments, while Benin partially settled its debt, resulting in a combined debt of over $11 million. This significant shortfall has raised concerns about the viability of Nigeria’s cross-border electricity trade. In the first quarter of 2025, Nigeria invoiced six international electricity customers $17.24 million but only recovered $5.8 million, approximately 34%.
The Niger Republic stands out as the sole country to fully settle its invoice, paying $3.03 million in full. Experts warn that without strong enforcement, local and cross-border defaults could deter future investments in Nigeria’s power sector, exacerbating liquidity challenges for generation and transmission companies
As energy demand rises in West Africa, Nigeria’s role as a power exporter faces pressure to ensure payment terms are honored. The sustainability of Nigeria’s cross-border electricity trade hangs in the balance, and experts are calling for stronger enforcement to prevent defaults and ensure the growth of the power sector. #Nigeria’s Electricity Debt: Benin and Togo Owe Over $11m for Q1 2025 Supply#
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