Togo, Niger, Benin Owe Nigeria ₦25 Billion for Electricity — NERC Reveals Cross-Border Power Debt

Nigeria is chasing regional power debts after the Nigerian Electricity Regulatory Commission (NERC) disclosed that neighbouring countries Togo, Niger Republic, and Benin Republic collectively owe approximately ₦25 billion for electricity supplied under bilateral power arrangements.

The revelation highlights both the potential and challenges of regional electricity trade in West Africa, where Nigeria not only generates but exports power to neighbouring grids.

What the NERC Report Says

According to the regulatory body, the outstanding sum is a result of unpaid bills for electricity supplied to neighbouring countries through cross-border interconnections.

The breakdown of the debt is being finalised, but NERC sources indicate that the majority of the liability is linked to delayed or missing payments for power actually received and consumed by utilities in:

Togo

Niger Republic

Benin Republic

NERC has emphasised that these arrears have accumulated over time and must be resolved if regional power cooperation is to remain sustainable.

Why This Matters to Nigeria

Nigeria is one of the few countries in West Africa with a generating capacity large enough to supply neighbouring grids. Electricity exports present an opportunity to:

Earn foreign exchange

Strengthen regional integration

Boost economic cooperation

Improve power reliability through shared infrastructure

But when debts go unpaid, the benefits of cross-border power sales are eroded — leaving Nigerian generators and distributors with significant financial exposure.

NERC’s disclosure underscores the importance of clear billing, transparent accounting, and timely payment mechanisms in international power trade.

What Regional Power Trade Looks Like

Under agreements governed by regional bodies such as ECOWAS and the West African Power Pool (WAPP), Nigeria has been linked to neighbouring power grids via high-voltage lines capable of transmitting hundreds of megawatts.

These arrangements aim to:

Reduce power shortages

Promote collaborative energy planning

Share surplus generation capacity

In practice, however, generating electricity is only part of the value chain: collecting payment — especially across borders with different regulatory regimes — is equally crucial.

Reactions from Power Experts

Energy analysts say that unpaid power bills are not unique to Nigeria’s neighbours — but they caution that persistent arrears could:

Strain relationships between power utilities

Discourage private investment in generation and transmission

Create liquidity problems within the Nigerian Electricity Supply Industry (NESI)

Some experts suggest that mechanisms such as regional escrow accounts, multilateral payment guarantees, and dedicated foreign exchange provisions be introduced to safeguard cross-border power revenue.

Diplomacy and Enforcement

While the debt is primarily a commercial matter, it has diplomatic overtones:

Nigeria can pursue settlements through bilateral agreements

Disputes may be referenced to regional economic bodies

Long-term frameworks may be needed to bind countries to payment schedules without compromising cooperation

NERC’s announcement could prompt renewed negotiations between the affected countries and Nigeria, with stakeholders aiming to reach amicable settlements.

Conclusion: Power Trade Potential vs. Payment Reality

Nigeria’s role as a regional power exporter is a significant advantage — but the ₦25 billion owed by Togo, Niger Republic, and Benin Republic exposes vulnerabilities in how cross-border electricity revenue is managed.

Resolving the debt and creating robust payment systems will be essential if Nigeria is to leverage its power potential for economic growth and regional integration.

For now, the spotlight is on regulators, policymakers, and their counterparts in neighbouring states to find a workable solution that keeps the lights on — and the cash flowing.