Nigeria Loses Billions as Togo, Benin, and Niger Owe N17.45bn for Electricity in Q1 2026

Nigeria Loses Billions as Togo, Benin, and Niger Owe N17.45bn for Electricity in Q1 2026

Nigeria's electricity sector is facing another major financial setback after neighbouring countries reportedly failed to fully pay for electricity supplied during the first quarter of 2026.

According to the latest report released by the Nigerian Electricity Regulatory Commission (NERC), electricity customers in Togo, Benin Republic, and the Niger Republic owe Nigeria approximately N17.45 billion after paying just 27.57% of the total amount billed.

The growing debt has once again raised serious concerns about the sustainability of Nigeria's power sector, which is already battling funding shortages, inadequate infrastructure, and mounting liquidity challenges.

Nigeria Records Massive Electricity Debt from West African Neighbours

The NERC report revealed that the three international bilateral electricity customers were billed a total of $17.48 million for electricity supplied during Q1 2026.

However, only $4.82 million was paid, leaving an unpaid balance of $12.66 million, equivalent to roughly N17.45 billion using an exchange rate of N1,378 per US dollar.

Despite the poor payment record, Nigeria continued exporting electricity to neighbouring countries under existing bilateral agreements with electricity generation companies operating within the Nigerian Electricity Supply Industry (NESI).

Breakdown of Electricity Payments

The report showed significant differences in payment performance among the international customers.

Paras-SBEE (Benin Republic)

Invoice: $1.94 million

Payment: $0

Remittance Performance: 0%

Paras-SBEE failed to make any payment during the quarter despite receiving uninterrupted electricity supply.

Paras-CEET (Togo)

Invoice: $1.67 million

Payment: $0

Remittance Performance: 0%

The company also failed to settle any part of its electricity bill.

Transcorp-SBEE (Ughelli)

Invoice: $4.20 million

Payment: $900,000

Remittance Performance: 21.43%

Only a small portion of the total invoice was paid.

Transcorp-SBEE (Afam III)

Invoice: $2.90 million

Payment: $1.13 million

Remittance Performance: 38.97%

Payments remained below half of the billed amount.

Mainstream-NIGELEC (Niger Republic)

Among all international customers, Mainstream-NIGELEC delivered the strongest payment performance.

Invoice: $4.45 million

Payment: $2.79 million

Remittance Performance: 62.70%

Although it still failed to pay the full invoice, it recorded the highest payment rate.

Another Togo Electricity Customer

Another electricity customer in Togo failed to pay its $2.29 million invoice, recording another 0% remittance performance.

Old Debts Still Being Repaid

While payments for current electricity invoices remained poor, NERC disclosed that several international customers made partial payments toward debts accumulated in previous quarters.

During the first quarter of 2026:

SBEE (Benin Republic) paid $4.05 million

Ughelli debt: $3.28 million

Paras debt: $770,000

NIGELEC (Niger Republic) paid $1.87 million

CEET (Togo) paid $720,000

Although these repayments helped reduce historical debts, they did little to improve current invoice collections.

Nigerian Electricity Companies Perform Better

Unlike the international customers, domestic bilateral electricity customers showed strong payment discipline.

According to NERC:

Total Invoice: N6.12 billion

Total Payment: N5.82 billion

Payment Performance: 95%

The impressive remittance rate highlights a sharp contrast between Nigerian customers and the country's international electricity buyers.

Ajaokuta Steel Still Owes Electricity Bills

The report also identified Ajaokuta Steel Company Limited and its host community among chronic electricity debtors.

According to NERC:

Invoice from Nigerian Bulk Electricity Trading (NBET): N676.88 million

Invoice from the Market Operator: N189.38 million

Despite receiving electricity, no payment was made during the first quarter of 2026.

Why This Matters

Nigeria's electricity industry depends heavily on timely payments from both domestic and international customers.

When electricity bills remain unpaid:

Generation companies struggle to recover costs.

Investments in power infrastructure decline.

Electricity supply becomes less reliable.

The sector's liquidity crisis worsens.

Nigerian taxpayers indirectly bear the financial burden.

Experts believe stronger enforcement of bilateral electricity agreements may become necessary if payment defaults continue.

Key Highlights

Nigeria is owed approximately N17.45 billion for electricity exported in Q1 2026.

Only 27.57% of international electricity invoices were paid.

Benin Republic and Togo recorded multiple customers with 0% payment performance.

Niger Republic recorded the best payment rate at 62.70%.

Domestic electricity customers achieved a 95% remittance rate.

Ajaokuta Steel Company failed to pay over N866 million in electricity invoices.

Frequently Asked Questions (FAQs)

How much do Togo, Benin, and Niger owe Nigeria for electricity?

They owe approximately N17.45 billion, representing unpaid electricity invoices for the first quarter of 2026.

Why does Nigeria export electricity to neighbouring countries?

Nigeria exports electricity under bilateral agreements involving power generation companies within the Nigerian Electricity Supply Industry (NESI) to support regional power cooperation.

Which country paid the highest percentage of its electricity bill?

The Niger Republic, through Mainstream-NIGELEC, recorded the highest payment performance by paying 62.70% of its invoice.

Which countries made no payment?

Some electricity customers in Benin Republic and Togo, including Paras-SBEE and Paras-CEET, made no payment during the first quarter of 2026.

How did Nigerian customers perform?

Domestic bilateral customers performed significantly better, paying 95% of their electricity invoices.

Why are unpaid electricity bills a concern?

Outstanding debts reduce cash flow in Nigeria's electricity sector, making it harder to maintain infrastructure, improve power generation, and ensure stable electricity supply.

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