Benin, Two Other Countries Owe Nigeria N17.45 in Electricity Debt
- Nigeria’s electricity debt to neighbouring countries exceeds N17.45 billion as payment challenges persist
- International customers remitted only 27.57% of electricity invoices, highlighting significant liquidity issues in Nigeria’s power sector
- Domestic bilateral customers achieved a 95% payment rate, contrasting with poor remittance performance of foreign counterparts
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria's electricity debt burden has continued to mount, with three neighbouring West African countries owing about N17.45 billion for electricity supplied in the first quarter of 2026.
A new report by the Nigerian Electricity Regulatory Commission (NERC) revealed that customers in the Benin Republic, Togo and the Niger Republic paid only 27.57% of the $17.48 million billed for electricity during the period, leaving an outstanding balance of $12.66 million, equivalent to about N17.45 billion at an exchange rate of N1,378/$.
The latest figures underscore the persistent payment challenges facing Nigeria's power sector despite the country's continued electricity exports to neighbouring nations under bilateral power supply agreements.
Source: Getty Images
International customers fall short on payments
According to NERC's first-quarter 2026 report, the three international bilateral customers remitted only $4.82 million out of the total amount invoiced by the Market Operator.
The regulator noted that the poor remittance performance of foreign customers remains a major contributor to the liquidity challenges confronting Nigeria's electricity industry.
"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 commission stated.
Benin and Togo record zero remittance
The report showed that some electricity distributors failed to make any payment during the review period.
Paras-SBEE, which supplies power to the Benin Republic, recorded zero payment against its $1.94 million invoice, according to a report by Punch.
Likewise, Paras-CEET, serving customers in Togo, did not remit any amount despite receiving an invoice of $1.67 million.
Another supplier to the Benin Republic, Transcorp-SBEE (Ughelli), paid just $0.90 million out of its $4.20 million bill, representing a remittance rate of 21.43%.
Similarly, Transcorp-SBEE (Afam 3) settled $1.13 million from its $2.90 million invoice, achieving a payment performance of 38.97%.
Among the international customers, Mainstream-NIGELEC, which exports electricity to the Niger Republic, emerged as the best performer after remitting $2.79 million out of $4.45 million, translating to a 62.70% payment rate.
Meanwhile, Odukpani-CEET, another supplier to Togo, also failed to make any payment against its $2.29 million invoice.
Some old debts begin to clear
Despite the poor performance on current invoices, NERC disclosed that several international customers made payments towards debts accumulated in previous quarters.
According to the commission, 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.
Nigerian customers perform better
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, the regulator noted that Ajaokuta Steel Company Limited and its host community again failed to pay their electricity bills.
Source: Getty Images
According to the report, 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.
The recurring non-payment by both international and some domestic customers continues to strain Nigeria's electricity market, raising concerns over the financial sustainability of the country's power sector.
FG to pay Nigerians for excess solar power
Legit.ng earlier reported that Nigeria is set to take a major step toward expanding electricity access and accelerating renewable energy adoption after the Nigerian Electricity Regulatory Commission (NERC) introduced new rules that will allow consumers to sell excess solar power back to the national grid.
The newly released Net Billing Regulations 2026 establish a framework that enables households, businesses and industrial users to generate electricity from renewable sources, primarily solar energy, for their own consumption while earning credits for surplus power supplied to distribution companies.
The initiative is expected to boost electricity availability, reduce pressure on the national grid and create fresh incentives for investment in clean energy solutions.
Source: Legit.ng
