Benin, Togo Owe Nigeria Over $11 Million in Unpaid Electricity Bills, Threatening Power Market Stability
The Nigerian Electricity Regulatory Commission (NERC) has revealed that Benin and Togo failed to remit over $11 million for electricity supplied by Nigeria in the first quarter of 2025, raising concerns about the sustainability of cross-border power exports. According to NERC’s latest report, the two neighboring countries were invoiced a total of $17.24 million for electricity consumed between January and March 2025, but only $5.8 million was paid, leaving an outstanding debt of $11.44 million.
The persistent failure of Benin and Togo to settle their electricity bills has sparked renewed calls from stakeholders in Nigeria’s power sector to suspend cross-border electricity exports until the debts are cleared. Industry experts warn that the poor remittance trend is placing significant financial strain on Nigeria’s electricity market, potentially undermining efforts to stabilize and expand the country’s power infrastructure.
NERC highlighted that the unpaid debts are part of a broader challenge in the international electricity trade, where Nigeria supplies power to neighboring countries through bilateral agreements. The commission urged the federal government to implement stricter measures to ensure timely payments and safeguard Nigeria’s energy sector.
“This level of indebtedness is unsustainable and poses a serious risk to the liquidity of Nigeria’s electricity market,” said a senior NERC official, who spoke on condition of anonymity. “If these countries cannot meet their financial obligations, Nigeria may have no choice but to reconsider its export commitments.”
The issue has ignited public debate, with some Nigerians questioning the rationale behind exporting electricity while domestic supply remains inadequate in many regions. Calls for prioritizing local power needs have grown louder, with advocacy groups urging the government to address the debt crisis and review the terms of international power agreements.
The federal government has yet to issue an official response to the situation, but sources indicate that discussions are ongoing to address the unpaid debts and explore diplomatic solutions with Benin and Togo. Meanwhile, NERC has promised to provide updates on measures to recover the outstanding payments and ensure the stability of Nigeria’s electricity market.
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