By Mahmoud
Nigeria’s cross-border electricity trade is facing fresh concerns following an outstanding debt of $28.33 million, equivalent to about N37.44 billion, owed by electricity customers in Benin Republic and Togo for ancillary services provided between 2023 and 2025.
An analysis of reports by the Nigerian Electricity Regulatory Commission (NERC) showed that three international electricity customers—NIGELEC of Niger Republic, SBEE of Benin Republic and CEET of Togo—were billed a combined $183.5 million in ancillary service charges during the period.
The utilities paid $155.17 million, leaving a cumulative balance of $28.33 million.Togo’s Compagnie Energie Electrique du Togo (CEET) accounts for the overwhelming majority of the outstanding debt.
CEET was billed $50.38 million but paid only $23.5 million, leaving $26.88 million unpaid, representing about 95 per cent of the total outstanding balance. SBEE, meanwhile, owed $1.47 million, while NIGELEC recorded a slight excess payment.
Energy expert Tobi Oluwatola explained that the debt does not represent unpaid electricity consumed by the two countries, but residual charges for regulated market-related services involving the regulator, transmission company, bulk trader, market operator and system operator.
He said the actual cost of electricity supplied, including energy and capacity charges for about 350 megawatts, is handled separately under commercial arrangements.
Oluwatola said the cross-border electricity trade was designed to operate under commercially disciplined arrangements, including letters of credit or bank guarantees, and relies on surplus generation rather than electricity taken from Nigerian households.
He added that efforts were underway to secure outstanding service payments in a manner similar to the guarantees backing the energy contracts, while noting that some delays could be linked to legacy arrangements involving government-associated power plants rather than straightforward foreign defaults
About The Author
