International customers that get their power supply failed to pay the sum of $19.84m (N29.18bn) from the $34.71m (51bn) bills issued to them from January to June of 2025, analysis of quarterly reports by the Nigerian Electricity Regulatory Commission has shown.
The report said the countries that got the supply through their electricity utility companies include; Société Beninoise d’Energie Electrique (SBEE), Compagnie Energie Electrique du Togo (CEET) and Société Nigerienne d’electricite (NIGELEC) and they [paid just 57 percent of the electricity bills.
A breakdown showed that the companies were given a $5.17m bill for January but they paid $3.64m.
For February, they were billed $5.52m from which they paid $0.81m while in March the bill increased to $6.49m from which $1.43m was paid and in April, $6.34m bill was given but $3.85m was paid.
In May, the bill was reduced to $5.68m but $2.88m was paid while June saw a $5.51m bill and $2.26m was paid.
Analysis by country showed, the SBEE of Benin had the highest bill of $29.76m of which it paid $9.16m.
This means that the country paid 69% of its bills having paid $2.76m in January, $2.16m in April, $1.98m in May and $2.26m. It did not pay for supply it got in February and March from Transcorp generating company in Ughelli and PARAS GenCo.
NIGELEC of Niger Republic was the second biggest customer with $8.43m worth of electricity supply but it paid $5.62m, meaning it offset 77 per cent of its bills.
A breakdown showed the company was billed $0.88m worth of electricity in January and paid the whole money and also paid the entire $0.81m billed it was given in February but was able to pay $1.34m from the $3.03m billed given in March.
In April, it also paid off all the $1.69m it was billed and also did the same with the $0.9m bill for May. But in June it failed to pay anything from its $1.12m bill.
For, CEET of Togo, it failed to pay any of its $7.2m bill, having issued $0.75m for electricity in January, $1.02m in February, $3.15m in March, $0.98m in April, $0.78 in May and $0.52m in June.
Foreign obligations in face of low domestic supply
It would be recalled that NERC had last year directed the grid operator to cut back on supplies to customers overseas to boost domestic supply.
NERC, in a directive said the grid operator’s current approach to managing supply has caused significant hardship for Nigerians because supply under bilateral contracts, including export to international customers, takes priority over supply to domestic customers.
Also, a former Managing Director of the Transmission Company of Nigeria (TCN), Usman Mohammed, in 2019 threatened to cut electricity supply to neighbours Togo and Niger over a $16 million debt.
Then, it was estimated that Niger owes $2 million and Togo $14 million. The countries have reduced the debt from $100 million a couple of years back.
“We will disconnect them. Electricity is not charity,” Mr Mohammed said.
History of debts
Our correspondent reports that international customers have a history of late payments with debts piling up.
NERC reported that these customers owed Nigerian power companies over $12 million in unpaid debts at the end of 2023.
Analysts at the Center for Petroleum, Energy Economics and Law in a recent report say long-term solutions to the challenges of low supply involve infrastructure improvements, increased generation capacity, and stricter enforcement of regulations within the power sector.
Nigeria supplies 300 megawatts of electricity to Togo, Benin and Niger.
Daily Trust reports that Nigeria has an installed electricity generation of 13,600 to 14,000 MW but due to infrastructural limitation, the output has hovered around 5,500 megawatts amidst the wide supply gaps which have thrown many households into darkness.
Analysts say despite the persistent debt challenge, Nigeria would continue to honour international obligations on electricity supply to neighbouring countries.
Industry analyst, Dr. Dauda Garuba said, “Nigeria doesn’t need to stop doing energy business with its neighbours because of its inability to meet its obligation to the local market. Those are contracts meant to be fulfilled, too.”
Also, Adetayo Adegbenle said, “Supply to neighboring States is primarily because of the international agreement we signed to build River Niger dam. Meanwhile, this is not a unique situation as these bills are easily charged to the Balance of Trade.”
More woes for generating companies
Meanwhile, the lack of payment by the international companies brings more woes to electricity Generating Companies (Gencos) that have been reeling from debts owed to them by industry players from the federal government and the electricity Distribution Companies (DisCos).
According to the existing structure of subsidy in the sector, the federal government pays 50 per cent of the generating cost of electricity, which has amounted to over a trillion naira in the first half of 2025.
The companies are also owed another N4tr with N2tr as legacy debt and another N2tr as subsidy payment for 2024.
While the N4trn has been a contentious issue in the sector, the federal government has been looking for ways to clear the debt.
The Special Adviser to the President on Energy, Olu Verheijen, had last week in a statement said the government had approved a N4tr bond to finance the debt.
She said the government is focused on creating the right conditions for investment, from modernizing the grid and improving distribution to scaling embedded generation.
She added that by closing metering gaps, aligning tariffs with efficient costs, improving subsidy targeting to support the poor and vulnerable, and restoring regulatory trust, it is shifting from crisis response to sustained delivery and building the confidence needed to attract large-scale private capital.
Similarly, the Chairman of Heirs Holdings and Transcorp Power, Tony Elumelu, was quoted in the statement to have said: “For the first time in years, we are seeing a credible and systematic effort by the government to tackle the root liquidity challenges in the power sector. We commend President Tinubu and his economic team for this bold and transformative step.”
He added that beyond clearing arrears, the debt reduction plan signals a strategic reset of Nigeria’s electricity market.
“By restoring the financial health of power companies, it will enable new investment in generation capacity, modernize grid infrastructure, and deliver more reliable electricity to homes and businesses, creating a stronger foundation for industrialization, job creation, and inclusive economic growth.”
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