Nigeria’s regional power diplomacy is facing a fresh liquidity test as Togo, Niger, and the Benin Republic have accumulated a combined debt of $17.8 million (approximately ₦25.36 billion) for electricity supplied under bilateral agreements.
According to the Commission’s latest industry performance report, this figure represents a significant deficit in the recovery of costs for exported energy, as cross-border utilities continue to fall short of their financial obligations to the Market Operator.
Data released by the regulator indicates that for the period under review, the Market Operator issued invoices totalling $18.69 million to four international firms: SBEE in the Republic of Benin, CEET in Togo, and NIGELEC in Niger. Out of this total billing for current consumption, only $7.12 million was remitted. This leaves an outstanding balance of $11.56 million for the third quarter alone, reflecting a remittance performance of just 38.09 per cent.
In addition to the current quarter's shortfall, NERC reported that these countries are still carrying "legacy" debts from previous billing cycles. At the start of the third quarter, the total outstanding balance stood at $14.07 million. While the international customers made payments totalling $7.84 million toward these older debts, a residual balance of $6.23 million remains unpaid, bringing the total cumulative debt for both current and past periods to $17.8 million.
The Commission’s figures reveal a stark contrast between international and domestic payment behaviours. While foreign utilities struggled to meet half of their obligations, Nigerian domestic bilateral customers achieved a much higher remittance rate of 87.6 per cent. This internal group was invoiced ₦23.95 billion and successfully remitted ₦20.99 billion to the Market Operator during the same timeframe.
NERC categorised the $7.84 million payment toward old debts as a positive step but emphasised that the ongoing failure to settle current invoices in full remains a challenge. The regulator noted that NIGELEC made a payment of $3.29 million against its legacy debt, while SBEE and CEET remitted $3.41 million and $1.13 million, respectively, toward their previous arrears.
The Commission underscored that the continued accumulation of these debts impacts the overall liquidity of the Nigerian Electricity Supply Industry (NESI). The regulator maintained that the Market Operator is expected to continue invoking relevant market rules to ensure that international offtakers comply with the terms of their bilateral agreements and improve their remittance levels to match domestic performance.
