Benin and Togo have failed to pay more than $11 million owed to Nigeria for electricity supplied in the first quarter of 2025, according to the Nigerian Electricity Regulatory Commission.
The two countries, through their national utilities — Société Béninoise d’Énergie Électrique and Compagnie Energie Electrique du Togo — paid only a small portion of their total invoices under existing bilateral agreements.
CEET, which sources power from Odukpani and Paras Energy, made no payment during the period. SBEE, with similar contracts via Transcorp and Paras Energy, remitted only part of its outstanding debt.
Among the defaulters were PARAS-CEET (Togo), which remitted only $0.63m out of $1.92m; TRANSCORP-SBEE (Afam 3), which paid $0.3m of a $1.73m invoice; TRANSCORP-SBEE (Ughelli), with $1.82m paid against $4.97m; and ODUKPANI-CEET and PARAS-SBEE, both of which made no payment, according to the report.
Of the $17.24 million invoiced to six international bilateral electricity customers, only $5.8 million was paid—representing a remittance rate of just 33.7%, according to the report. Notably, Niger Republic’s NIGELEC, which received supply via Mainstream Energy, was the only entity to fully settle its $3.03 million bill.
In contrast, Benin’s SBEE and Togo’s CEET collectively owed over $11 million, with little or no payments made.
These defaults reflect a broader pattern of poor remittance compliance among Nigeria’s international electricity customers, raising concerns about the sustainability of cross-border power supply agreements.
NERC has repeatedly warned that it may suspend electricity supply to Benin and Togo, citing their continued failure to meet payment obligations—an issue the Commission says threatens the stability of Nigeria’s power market.
On the domestic front, while remittance performance was stronger, challenges persist. Some bilateral customers either defaulted, made partial payments, or were only servicing long-standing arrears.
MSTM/Inner Galaxy stood out by fully settling its N1.64 billion invoice. In contrast, firms like NDPHC/SUNFLAG, TAOPEX/KAM INT, TAOPEX/Kam Steel, and Sapele/Phoenix made no payments, despite being billed hundreds of millions of naira.
Other notable partial defaulters included NDPHC/WEEWOOD, which paid N71.74 million of its N104.03 million invoice, and NORTH SOUTH/STAR PIPE, which remitted N21.51 million out of N32.39 million. Trans Amadi (OAU) and Trans Amadi (FMPI) jointly paid N23.57 million of the N35.98 million owed. Alaoju GENCO/APLE recorded a remittance rate of just 21.96%, settling only N100 million of its N455.36 million invoice.
NERC also expressed concern over Ajaokuta Steel Company, a designated special customer, which made no payment toward its N1.38 billion (NBET) and N134.05 million (MO) bills—extending its persistent record of non-compliance.
Experts warn that the continued defaults—both domestic and international—undermine the sustainability of bilateral and special supply arrangements in Nigeria’s electricity market.
