Benin, Togo Owe Nigeria Over $11m for Q1 2025 Electricity Supply

Nigeria is growing more concerned about unpaid electricity bills from West African neighbors Benin and Togo. Both countries collectively owe over $11 million for the electricity supplied in the first quarter of 2025, the Nigerian Electricity Regulatory Commission (NERC) reported.

Although they are getting power under bilateral arrangements with Nigerian generation companies, Togo's Compagnie Energie Electrique du Togo (CEET) failed to make any payments. Only part of its payments was made by Benin's Société Béninoise d'Énergie Électrique (SBEE). Of the total $17.24 million billed to six foreign customers, a meagre $5.8 million was received—i.e., a remittance rate of just 33.7%.

Breakdowns show that:

1. CEET and SBEE defaulted on a number of contracts, including those with Transcorp, Paras Energy, and Odukpani.
2. Niger Republic's NIGELEC was the only foreign customer to fully settle its $3.03 million account.

NERC has cautioned that constant non-payment threatens the financial health of Nigeria's electricity sector and may lead to a reduction in electricity exports. Experts caution that without penalty, these defaults would have the potential to deter future investment and inhibit regional energy cooperation.

The issue also indicates local challenges, as some Nigerian industrial and government firms have also defaulted on payments, contributing to the industry's liquidity strains.