International customers owe Nigeria $17.8 million (an equivalent of over ₦25 billion at the current exchange rate) for electricity supplied under bilateral arrangements.
The Nigerian Electricity Regulatory Commission (NERC), in its Third Quarter 2025 report, noted that Togo, Niger, and Benin were invoiced a total of $18.69m by the Market Operator for electricity supplied during the period; however, they remitted only $7.125m, leaving an outstanding balance of $11.56m.
The regulator identified the international offtakers as Compagnie Énergie Électrique du Togo, Société Béninoise d’Énergie Électrique of the Republic of Benin, and Société Nigérienne d’Électricité of the Republic of Niger.
Electricity supplied to the three countries was generated by grid-connected Nigerian generation companies and delivered through bilateral cross-border power arrangements.
According to the report, the three international customers had legacy invoices of $14.7m, out of which they paid $7.84m, leaving a balance of $6.23m. The debt incurred from the previous quarters and that of Q3 2025 amounted to $17.8m. This is ₦25.36bn at an exchange rate of ₦1,425 to a dollar.
The three international bilateral customers’ purchasing power from the grid-connected GenCos made a cumulative payment of $7.125m against the $18.69m invoice issued to them by the Market Operator for services rendered in 2025/Q3.
NERC’s report stated that the remittance level represented a 38.09 per cent remittance performance, with more than half of the invoices remaining unpaid at the end of the quarter.
“The three international bilateral customers being supplied by GenCos in the NESI made a payment of $7.12m against the cumulative invoice of $18.69m issued by the MO for services rendered in 2025/Q3, translating to a remittance performance of 38.09 per cent.
The commission explained that some bilateral customers paid for power purchased in the quarters before the one being reviewed.
“It is noteworthy that some bilateral customers also made payments for outstanding MO invoices from previous quarters, as follows: the MO received $7.84m from the international bilateral customers and N1.3bn from the domestic bilateral customers,” the report added.
In contrast, NERC said domestic bilateral customers performed better, remitting ₦3.19bn out of the ₦3.64bn invoiced to them during the quarter, representing a remittance rate of 87.61 per cent.
“The domestic bilateral customers made a cumulative payment of N3.19bn against the invoice of N3.64bn issued to them by the MO for services rendered in 2025/Q3, translating to 87.61 per cent remittance performance,” it added.
The Commission further disclosed that Nigeria’s 11 electricity distribution companies remitted a combined ₦381.29bn to the Nigerian Bulk Electricity Trading Plc and the Market Operator in Q3 2025, out of a total invoice of ₦400.48bn, translating to a remittance performance of 95.21 per cent.
As part of its statutory assessment of the commercial performance of the electricity market, the Regulator noted that the figures were based on reconciled market settlements submitted to the commission as of December 18, 2025.
Nigeria supplies electricity to neighboring, however, faces significant challenges with unpaid bills, with recent reports (late 2025/early 2026), indicating millions in arrears from these customers, despite NERC capping exports to prioritise domestic needs due to generation shortfalls and payment indiscipline.
These exports utilise Nigeria’s surplus power but highlight issues with consistent payment and balancing regional obligations with local demand, leading to reduced export levels.
Key Customers & Arrangements:
- International Buyers: Primarily the national utilities of Benin (SBEE), Togo (CEET), and Niger (NIGELEC).
- Bilateral Contracts: Power is sold under cross-border agreements from Nigerian Generation Companies (GenCos).
Financial Issues & Debt:
- Significant Arrears: As of late 2025/early 2026, these countries owed substantial amounts (e.g., $17.8 million in Q3 2025.
- Low Remittance: Payment performance has been poor, sometimes below 40% of billed amounts.
