The Nigerian Electricity Regulatory Commission (NERC) has sounded the alarm over soaring electricity debts, disclosing that international and domestic bilateral customers owe a combined $12 million and ₦700 million, respectively, for power consumed in the first quarter of 2025.
According to its newly released Q1 2025 Market Performance Report, six foreign bilateral customers—including Société Béninoise d’Energie Électrique (Benin Republic), Compagnie Énergie Électrique du Togo (Togo), and Société Nigérienne d’Électricité (Niger Republic)—paid just $5.80 million against a $17.24 million invoice. This translates to a remittance rate of 33.7%, leaving over $11.4 million in unpaid bills in a single quarter.
NERC warned that this shortfall threatens the financial sustainability of Nigeria’s electricity market and has requested urgent intervention from the Federal Government.
“The ongoing trend of non-payment by international bilateral customers poses a significant risk to the electricity value chain. The Commission has formally sought federal intervention to address this issue,” the report noted.
On the domestic front, bilateral customers showed a stronger but still insufficient remittance rate of 72.24%, with ₦1.86 billion paid out of ₦2.57 billion invoiced by the Market Operator (MO).
Notably, payments were received from customers including: NDPHC-Weewood: ₦28.63 million, North-South/Star Pipe: ₦10.41 million, Trans-Amadi (OAU/FMPI): ₦25.01 million.
These payments helped reduce legacy debts, bringing the total recovered for overdue invoices to ₦64.06 million during the quarter.
However, Ajaokuta Steel Company Ltd and its host community, designated as special customers, failed to remit any payments. Their Q1 debt now stands at ₦1.38 billion owed to the Nigerian Bulk Electricity Trading (NBET) and ₦130 million to the MO, continuing what NERC described as a longstanding pattern of non-payment.
The Commission’s concerns reignite debate over the economic viability of Nigeria’s cross-border electricity agreements. While Nigeria routinely exports electricity to neighboring countries under bilateral contracts, the consistent default by these partners raises questions about the effectiveness of such deals.
NERC’s appeal highlights the urgency for: Stronger payment enforcement frameworks, Renegotiation of bilateral supply agreements, Potential suspension of supply to delinquent customers.
As Nigeria continues to push for reforms in the electricity sector, these unresolved debts could either trigger long-overdue corrections—or further deepen the liquidity crisis plaguing the industry.
