Benin, Togo Risk Power Blackout Over $11 Million Electricity Debt to Nigeria
- Two African countries risk being disconnected by Nigeria over electricity debt owed in the first quarter of 2025
- Data from the Nigerian Electricity Regulatory Commission (NERC) shows the amount owed by the Benin Republic and Togo
- Nigeria sent electricity invoices to six African countries for electricity supplied during the period, with some paying in full, while others defaulted
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria says two African countries, Benin and Togo, owe it for electricity supplied in the first quarter of 2025.
The report is according to data from the Nigerian Electricity Regulatory Commission (NERC).
Source: Getty Images
One African country defaults on its electricity bill
The development comes despite receiving electricity via bilateral deals with generating electricity companies(GenCos) in Nigeria.
Both countries paid only a fraction of their bills, with Togo making no payments at all during the period, while Benin partially paid, leaving a cumulative debt of over $11 million.
According to Business Insider, Nigeria invoiced six international electricity consumers a total of $17.24 million during the review period but recovered $5.8 million, representing 34%.
Niger pays electricity bills in full
Only Niger Republic settled its invoice in full, paying about $3.03 million.
The shortfall from Togo and Benin raised worries about the sustainability of Nigeria’s cross-border electricity trade.
Reports say that in Nigeria, while some industrial users paid their electricity bills in full, several others defaulted or paid in part, leaving unpaid invoices worth hundreds of millions of naira.
The Nigerian electricity regulator said the non-payment is not restricted to international customers, but includes major domestic government-owned entities, calling the issue a long-standing problem which requires urgent reform and intervention.
NERC warns against defaults
NERC warned that the poor payment culture of these countries threatens the financial stability of Nigeria’s power sector.
The regulator added that the continued failure to meet payment obligations undermines confidence in bilateral power agreements.
Experts disclose that without stronger enforcement, these debts, both domestic and international, could discourage further investments in Nigeria’s power sector and worsen liquidity challenges for electricity generation and transmission firms.
As energy demand increases across West Africa, Nigeria’s position as a regional power leader is under pressure due to non-payment.
DisCos in Nigeria rake in billions
Meanwhile, on the home front, electricity distribution companies (DisCos) collected N553.63 billion in the first quarter of 2025 despite increasing complaints of low power supply, billing inefficiencies, and continued outages.
Punch reports that NERC’s data in the first quarter of this year disclosed that the remarkable revenue shows an increase of N43.79 billion from N509.84 billion collected in the previous quarter of 2024, representing an 8.59% increase.
Source: Getty Images
The increase in earnings came as Nigerians continued to battle electricity outages, grid collapses and supply fluctuations.
FG gives orders to reduce electricity supply to 3 African countries
Legit.ng earlier reported that the NERC is set to enhance power supply to domestic consumers following its orders directing the System Operator (SO) to cap supplies to international customers by 6 per cent of domestic supplies.
The affected countries include Togo, Benin Republic and the Niger Republic.
The development comes amid a high level of indebtedness and non-remittance of electricity bills supplied to the countries over the years.
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Source: Legit.ng
