…NERC Reports ₦25bn Foreign Debt, ₦1.03bn Local Liability
…Togo, Niger, Benin Owe $17.8m For Electricity Suppl
…Non-Payment Worsens Liquidity Crisis In Power Sector
Nigeria’s electricity sector is facing mounting revenue pressures as neighbouring countries—Togo, Niger and Benin Republic—owe over ₦25bn for power supplied under bilateral agreements, while Ajaokuta Steel Company Limited and its host community are indebted to the tune of ₦1.03bn, findings by the Nigerian Electricity Regulatory Commission have shown.
In its Third Quarter 2025 report, the NERC disclosed that the special customer category, comprising Ajaokuta Steel and the host community, failed to remit any payment for invoices issued within the review period, continuing what the regulator described as a
“longstanding trend of non-payment.”
According to the commission, the unpaid invoices include ₦1.03bn owed to the Nigerian Bulk Electricity Trading Plc and an additional ₦100m owed to the Market Operator for services rendered in the third quarter of 2025.
“This continues a longstanding trend of non-payment by this customer, and the Commission has communicated the need for intervention on this issue to the relevant Federal Government authorities,” NERC stated.
Ajaokuta Steel, conceived as Nigeria’s flagship integrated steel complex, was designed to serve as a catalyst for industrialisation, job creation and economic diversification.
However, persistent operational challenges, including power supply issues and debt accumulation, have continued to undermine the realisation of its objectives.
The report also revealed that Nigeria’s international electricity customers—Togo, Niger and Benin—owe a cumulative $17.8m, equivalent to over ₦25bn at the prevailing exchange rate, for electricity supplied during the period under review.
NERC noted that the three countries made a combined payment of $7.12m against a cumulative invoice of $18.69m issued by the Market Operator for third-quarter services, representing a remittance performance of 38.09 per cent.
On the domestic front, bilateral electricity customers recorded a stronger payment profile, remitting ₦3.19bn out of ₦3.64bn billed during the quarter, translating to a remittance performance of 87.61 per cent.
The commission added that some bilateral customers also cleared parts of outstanding debts from previous quarters, with international customers paying an additional $7.84m and domestic customers remitting ₦1.29bn toward earlier invoices.
Industry analysts warn that the growing debt burden—particularly from international off-takers and special customers—poses a significant threat to liquidity within the Nigerian Electricity Supply Industry, with implications for generation capacity, market stability and ongoing power sector reforms. Me
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