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| Nigeria Power Debt by Benin & Togo Q1 2025 |
Many factors drive this shortfall. Nigeria exports power under bilateral contracts. Those deals require timely payments to cover generation and transmission costs. The Market Operator issues invoices and tracks remittances. DisCos pay through an escrow system set up by the Central Bank of Nigeria .
In 2025 Q1, six international bilateral customers drew electricity from Nigerian power plants. That group includes Paras-SBEE and Paras-CEET in Benin, Transcorp-SBEE (Ughelli and Afam 3) in Benin, Mainstream-NIGELEC in Niger, and Odukpani-CEET in Togo. Each had distinct invoice and payment records.
Benin’s Paras-CEET owed $1.92 million. It paid $0.63 million (33 percent). Transcorp-SBEE (Ughelli) faced a $4.97 million bill but paid only $1.82 million (37 percent). Transcorp-SBEE (Afam 3) had a $1.73 million invoice and paid just $0.30 million (18 percent). In Togo, Odukpani-CEET owed $3.16 million and paid nothing. Mainstream-NIGELEC in Niger paid $3.03 million of its $3.04 million invoice (100 percent) .
Payment delays strain Nigeria’s power industry. When payments lag, GenCos and transmission firms lack funds for upkeep. That can hurt plant performance and grid stability. The escrow and waterfall system aims to shield generation and transmission from default. But shortfalls by international buyers still hit market players’ cash flow .
NERC’s report warns of rising debts in the power sector. It urges swift remittances to secure future supply. The Commission can invoke market rules to limit power dispatch to defaulting customers. It may also seek diplomatic or legal channels to enforce payment .
On the domestic front, Nigeria’s DisCos fared better. They remitted 95.9 percent of their ₦432.13 billion invoice (about $1 billion) to NBET and the Market Operator in Q1 2025. Only Abuja and Enugu DisCos fell short of 100 percent, at 98.4 percent and 99.3 percent respectively .
The debt by Benin and Togo adds to a broader trend of cross-border payment gaps. In 2024 Q4, those neighbours owed $8.84 million. The jump to $11.44 million in Q1 2025 marks a 29 percent increase in unpaid sums. It signals growing strain on regional energy trade .
Experts say resolving this issue will need stronger enforcement of bilateral power agreements. They also call for currency-swap mechanisms or letters of credit to guarantee payment in foreign currency. Such tools could cut exposure to exchange-rate swings and default risk.
Nigeria aims to boost electricity export as part of its market growth strategy. Exports help under-utilised plants earn more revenue. But payment discipline must improve to keep suppliers confident and investors engaged. NERC’s quarterly reports will continue to track remittance trends and push policy fixes.
Readers can share views on how Nigeria, Benin, and Togo can strengthen cross-border power trade. Constructive ideas may help push timely payments and secure steady regional power flow.