Benin Republic and Togo have defaulted on over $11 million in electricity payments owed to Nigeria for power supplied in the first quarter of 2025, according to a new report by the Nigerian Electricity Regulatory Commission (NERC). Despite ongoing bilateral agreements, both countries made little to no remittances for the power consumed, raising serious concerns about the future of cross-border energy trade.
Togo’s utility company CEET failed to pay any portion of its invoices from two bilateral supply agreements, while Benin’s SBEE made only partial payments. Specific defaulters listed in the report include PARAS-CEET, which paid just $0.63 million of a $1.92 million bill, and TRANSCORP-SBEE (Ughelli), which remitted only $1.82 million out of $4.97 million. Two other bilateral customers made no payments at all.
Out of a total of $17.24 million invoiced to six international bilateral customers, only $5.8 million was paid, translating to a remittance rate of just 33.7 per cent. Only Niger Republic’s NIGELEC settled its $3.03 million bill in full, highlighting a sharp contrast with the poor compliance of Benin and Togo.
NERC has issued repeated warnings to both countries, threatening to cut off electricity supply if payments continue to lag. The commission emphasized that consistent underpayment undermines the stability of Nigeria’s electricity sector and questions the financial viability of international energy deals.
Domestically, the report showed somewhat better performance, though issues remain. While some Nigerian companies paid in full, like MSTM/Inner Galaxy, nv others made partial or no payments, including the long-defaulting Ajaokuta Steel Company, which still owes over N1.5 billion. Experts caution that if these defaults persist, both local and cross-border power agreements could face serious disruptions.