Benin, Togo Default on $8.5m Electricity Debt to Nigeria — NERC Report
Neighbouring West African countries Benin and Togo have fallen behind on their electricity payments to Nigeria, leaving an outstanding balance of $8.5 million for power supplied in the second quarter of 2025, according to the latest report by the Nigerian Electricity Regulatory Commission (NERC).
International Customers Owe Nearly Half Their Bills
In its Q2 2025 Report, NERC revealed that six international bilateral customers sourcing power from Nigerian generation companies remitted only $9.01 million out of a total invoice of $17.54 million issued by the Market Operator (MO).
This represents a remittance performance of 51.33 per cent, leaving a payment deficit of $8.53 million.
The defaulting customers include Société Béninoise d’Énergie Électrique (SBEE) of Benin, Compagnie Energie Electrique du Togo (CEET) of Togo, and NIGELEC of Niger Republic.
Payment Breakdown by Country
According to the report, Mainstream Energy Solutions received $2.59 million out of the $3.71 million invoice sent to Niger’s NIGELEC — a 69.8 per cent settlement rate. However, Togo’s CEET made no payment toward its $4.31 million invoice during the period, while Benin’s SBEE, which sources power from Transcorp and Paras Energy, also left a portion of its bills unpaid.
“The six international bilateral customers being supplied by GenCos in the NESI made a payment of $9.01m against the cumulative invoice of $17.54m issued by the MO for services rendered in 2025/Q2, translating to a remittance performance of 51.33 per cent,” the report noted.
Domestic Customers Also Struggling
For domestic bilateral customers, the report indicated a similar pattern of underpayment. They collectively paid ₦1.4 billion out of ₦2.8 billion invoiced — a 50.1 per cent remittance rate.
Among all the reviewed contracts, only Transcorp (Ughelli)–SBEE achieved full settlement, paying $5.47 million in full. Others, such as Paras–SBEE, Paras–CEET, and Odukpani–CEET, made no payments.
NERC also noted that one domestic bilateral customer made partial payments for overdue invoices from earlier quarters.
“The MO received N10.53m from Trans-Amadi (OAU/FMPI) towards outstanding invoices from previous quarters,” the report added.
Liquidity Crisis Threatens Power Sector
The commission warned that the persistent shortfall in remittances from both international and local customers continues to undermine the liquidity of the Nigerian Electricity Supply Industry (NESI).
Timely payments, NERC emphasized, are crucial for sustaining grid operations, reliability, and the financial health of generation companies and market operators.
