Nigeria’s electricity export programme to neighbouring West African countries has come under renewed scrutiny after payment shortfalls pushed outstanding receivables to $17.8 million.
Data contained in a regulatory update from Nigerian Electricity Regulatory Commission shows that electricity supplied by Nigerian grid-connected generation companies to regional utilities continues to face weak settlement performance, despite improved remittances within the domestic market.
During the third quarter of 2025, electricity exports to Togo, Benin, and Niger were only partially paid for with a significant portion of billed amounts remaining unsettled at the end of the period.
The unpaid balance for the quarter, combined with arrears carried forward from earlier periods, lifted total outstanding obligations to $17.8 million, equivalent to about ₦25.36 billion.
The electricity was delivered under bilateral supply arrangements to national utilities, including Compagnie Énergie Électrique du Togo, Société Béninoise d’Énergie Électrique, and Société Nigérienne d’Électricité.
While these agreements are designed to strengthen regional energy integration and monetise Nigeria’s generation capacity, the latest figures highlight persistent payment risk associated with international offtakers.
Settlement performance by foreign buyers remains markedly weaker than that of domestic counterparties.
International customers paid less than half of their invoiced obligations during the quarter, a contrast that has widened concerns among market participants about cashflow exposure for Nigerian generation companies supplying power beyond the country’s borders.
By comparison, Nigeria’s local electricity market recorded stronger financial discipline as electricity distribution companies remitted ₦381.29 billion out of ₦400.48 billion invoiced for energy received in the same quarter.
This represents a payment performance exceeding 95 percent based on reconciled settlement data submitted by mid-December 2025.
The disparity between domestic and export collections highlights the uneven risk profile faced by power producers operating across both markets.
For Nigerian generation companies, delayed payments from regional buyers translate into liquidity pressure, especially in a sector already grappling with gas supply constraints, foreign exchange exposure, and legacy debts.
Export sales are often denominated in dollars and viewed as a potential hedge against naira weakness, but inconsistent remittances undermine that advantage.
The growing arrears also raise policy questions for Nigeria as it positions itself as a regional energy hub. While power exports support diplomatic and economic ties within West Africa, the absence of robust enforcement mechanisms or credit guarantees has left suppliers vulnerable to prolonged defaults.
Regulators and market stakeholders are increasingly focused on whether existing bilateral frameworks adequately protect Nigerian power companies, or whether stricter commercial terms, security deposits, or sovereign guarantees will be required to sustain cross-border electricity trade.
As Nigeria continues to balance domestic power needs with regional export ambitions, the $17.8 million payment gap serves as a reminder that expanding electricity trade without matching financial discipline could deepen stress across the power value chain rather than relieve it.
