Nigeria’s electricity export market recorded a sharp deterioration in payment performance during the first quarter of 2026, with neighbouring countries paying barely a quarter of the value of electricity supplied, leaving outstanding invoices of $12.66 million, according to the Nigerian Electricity Regulatory Commission (NERC).
NERC’s latest quarterly report shows that electricity distribution companies and utilities in Benin, Niger and Togo were invoiced a combined $17.48 million for electricity exported from Nigeria between January and March 2026. However, they remitted only $4.82 million, representing a payment rate of 27.57 per cent.
The report highlights significant differences in payment performance across the three export markets.
Utilities in Togo made no payments during the quarter. According to NERC, Paras-CEET and Odukpani-CEET were jointly billed $3.96 million but remitted nothing, leaving the entire amount outstanding.
In Benin, off-takers Paras-SBEE and Transcorp-SBEE Ughelli received invoices totalling $6.14 million. While Paras-SBEE settled its full invoice of $1.94 million, Transcorp-SBEE Ughelli paid $0.90 million against an invoice of $4.20 million, bringing total remittances from Benin to $2.84 million and leaving $3.30 million outstanding.
Meanwhile, Paras-NIGELEC, the Nigerian export off-taker serving Niger, was invoiced $7.38 million but remitted $1.98 million, leaving an outstanding balance of $5.40 million.
The figures underscore the continued challenge of collecting payments for cross-border electricity supplied under Nigeria’s regional power export arrangements. Although the NERC report disclosed the outstanding receivables, it did not indicate whether any enforcement actions or contractual remedies had been initiated against the affected counterparties.
The payment shortfalls have implications for Nigeria’s electricity value chain, particularly for generation companies (GenCos), which depend on export proceeds as an additional source of foreign currency earnings. These revenues help support operating costs, including natural gas procurement, plant maintenance and debt-servicing obligations.
The latest figures also highlight the commercial risks associated with regional electricity trading under the West African Power Pool (WAPP), the regional electricity market established to promote cross-border power exchange and strengthen energy security among member states.Sustained
Sustained delays in settling export invoices could undermine the commercial viability of regional power transactions and reinforce calls for stronger payment security mechanisms in future cross-border supply agreements.
Nigeria has increasingly positioned electricity exports as a source of foreign exchange earnings and regional energy integration. However, the latest NERC data suggest that improving payment discipline among cross-border off-takers remains critical to ensuring that exported electricity translates into timely and predictable cash flows for participants in the Nigerian power sector.
