Nigeria’s electricity export sector is once again in the spotlight as three neighboring African countries—Benin, Niger, and Togo—reportedly owe the West African giant a combined $20 million in unpaid power bills.
According to a recent market update by the Nigerian Electricity Regulatory Commission (NERC), these debts are tied to electricity supplied through international power agreements. Nigeria, which transmits energy to the West African Power Pool (WAPP) as part of regional cooperation efforts, has continued to face delayed payments from its partners, despite ongoing efforts to maintain cross-border energy trade.
A Persistent Challenge for Nigeria’s Power Sector
Nigeria’s electricity export arrangement was initially designed to promote economic integration and energy stability across West Africa. However, persistent non-payment has become a recurring issue. The $20 million owed represents only a fraction of the broader financial challenges plaguing the nation’s power industry.
Industry analysts say Nigeria continues to bear the financial strain of balancing domestic supply obligations with export commitments. Despite generating around 4,000 megawatts daily—below its installed capacity—Nigeria still channels part of its output to neighboring countries under bilateral and multilateral deals.
A senior energy expert, quoted in Business Insider Africa, noted that while regional energy trade enhances diplomacy and cooperation, Nigeria’s internal power shortfalls make such arrangements controversial. “It’s a delicate balance between maintaining good regional relations and ensuring Nigerians get reliable electricity,” he said.
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Calls for Stricter Accountability
The Nigerian government has been urged to tighten payment frameworks and enforce more transparent terms for energy exports. With the country already grappling with tariff adjustments, liquidity gaps, and infrastructure decay, delayed payments from foreign clients further complicate its power reform goals.
NERC’s report suggested that the outstanding debts could affect the liquidity of Nigeria’s electricity market, potentially impacting generation and transmission companies that depend on regular remittances to function effectively.
Energy stakeholders are now pushing for renegotiation of power export terms under the WAPP framework, emphasizing that “Nigeria cannot continue to subsidize energy for other nations while citizens still experience blackouts.”
Regional Energy Cooperation in Question
The electricity supply relationship between Nigeria and its neighbors has long been seen as a symbol of regional solidarity. Through the Transmission Company of Nigeria (TCN), power is exported via interconnected grids that stretch into Benin, Niger, and Togo—countries that rely heavily on Nigeria for a portion of their electricity needs.
However, the continuous accumulation of unpaid debts raises doubts about the sustainability of this cooperation. Economic observers argue that while the initiative strengthens diplomatic ties, it also places Nigeria at a financial disadvantage unless stricter repayment mechanisms are enforced.
