Benin,Togo electricity debt triggers shocking financial warning from Nigeria

Benin Togo electricity debt hits over $11m in unpaid power bills to Nigeria in Q1 2025, raising concerns about cross-border energy sustainability

[dropcap]B[/dropcap]enin Togo electricity debt has sparked renewed concern in Nigeria after both nations failed to pay over $11 million in electricity bills during the first quarter of 2025.

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The Nigerian Electricity Regulatory Commission (NERC) confirmed this alarming shortfall in its latest report, revealing that the two neighbouring countries paid only a fraction of their total invoice amounts.

Power was supplied to both countries under bilateral arrangements. However, Société Béninoise d’Énergie Électrique (SBEE) and Compagnie Energie Electrique du Togo (CEET) have fallen behind on payments, with CEET not remitting a single dollar during the period.

SBEE, meanwhile, paid only a portion of its obligations, despite being served by two separate Nigerian generation companies.

One of the starkest examples is the PARAS-CEET deal, under which Togo’s utility owed $1.92 million but paid only $0.63 million. SBEE’s contract with Transcorp’s Afam 3 plant yielded just $0.3 million of a $1.73 million bill.

Another SBEE-linked contract, this time with Transcorp’s Ughelli plant, resulted in a payment of $1.82 million against a $4.97 million invoice

. In two other bilateral deals — Odukpani-CEET and Paras-SBEE — there was no payment made whatsoever.

According to the NERC report, the total invoice across six international bilateral customers stood at $17.24 million.

Yet only $5.8 million was paid, amounting to a remittance rate of just 33.70 per cent. The only exception was Niger Republic’s NIGELEC, which fully settled its $3.03 million invoice for power supplied through Mainstream Energy.

In contrast, Benin Togo electricity debt continues to grow unchecked, despite repeated warnings. Analysts say the situation exposes the fragility of Nigeria’s cross-border electricity deals.

“It’s not just about the money — it’s about the market’s long-term health,” said one energy analyst familiar with the report. “If these countries don’t pay, the system eventually collapses.”

NERC has previously threatened to disconnect defaulters from the grid, warning that non-payment places unsustainable pressure on Nigeria’s electricity infrastructure.

However, enforcement remains a challenge, partly due to diplomatic sensitivities and regional energy commitments.

Back home, while some Nigerian domestic customers performed better, many still lag behind. MSTM/Inner Galaxy stood out by paying its N1.64 billion invoice in full.

Yet companies like NDPHC/SUNFLAG, TAOPEX/KAM INT, and Sapele/Phoenix made no payments at all, despite owing hundreds of millions in naira.

There were several notable partial defaulters. NDPHC/WEEWOOD paid N71.74 million out of N104.03 million. NORTH SOUTH/STAR PIPE settled N21.51 million from its N32.39 million bill.

Trans Amadi (OAU) and Trans Amadi (FMPI) jointly paid N23.57 million out of N35.98 million. Alaoju GENCO/APLE transferred only N100 million of its N455.36 million invoice, representing a mere 21.96 per cent payment rate.

The situation at Ajaokuta Steel Company is even more concerning. Despite being a designated special customer, the firm failed to make any payment on its N1.38 billion NBET invoice and an additional N134.05 million owed to the Market Operator.

Benin Togo electricity debt, combined with domestic delinquencies, is now being seen as a major threat to Nigeria’s energy sector.

Experts are calling for urgent structural reforms and stricter enforcement measures to restore financial discipline across all customer segments.

The long-term sustainability of regional and domestic electricity supply deals, they argue, depends on consistent and complete remittance by all parties.

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Without prompt resolution, Nigeria risks weakening an already fragile power market. Trust in cross-border energy trade, especially with countries like Benin and Togo, may begin to erode unless firm action is taken.

Oreoluwa Ojelabi

Oreoluwa is an accountant and a brand writer with a flair for journalism.