Nigeria's electricity debt burden has escalated, with three neighbouring West African countries—Benin Republic, Togo, and Niger Republic—owing approximately N17.45 billion for electricity supplied in the first quarter of 2026. According to a new report by the Nigerian Electricity Regulatory Commission (NERC), these international customers paid only 27.57% of the $17.48 million billed during the period, leaving an outstanding balance of $12.66 million, equivalent to about N17.45 billion at an exchange rate of N1,378/$.
International Customers Fall Short on Payments
The NERC's first-quarter 2026 report reveals that 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. 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%.
Niger Republic Performs Best Among Foreign Customers
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. 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.
Impact on Nigeria's Power Sector
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. The persistent liquidity issues highlight the need for stronger enforcement of payment obligations and potential renegotiation of bilateral power supply agreements to ensure the viability of electricity exports.
