…Three Countries Paid Only $62.75m Out Of $73.91m Billed For Electricity Services
….Ajaokuta Also Faces Disconnection Threat Over N5.46bn Unpaid Electricity Bills
Daud Olatunji
Togo, Niger and Benin accumulated $11.16m in unpaid electricity bills to Nigeria for power supplied by Nigerian electricity generation companies under bilateral arrangements in 2025, the Nigerian Electricity Regulatory Commission has disclosed.
The debt, according to NERC’s 2025 annual report, represents the gap between the $73.91m invoiced by the Market Operator for services provided to the three international electricity customers and the $62.75m they paid during the year.
NERC identified the indebted international customers as the Société Nigérienne d’Électricité (NIGELEC) of Niger Republic, Société Béninoise d’Énergie Électrique (SBEE) of Benin Republic and Compagnie Énergie Électrique du Togo (CEET) of Togo.
The commission said the three countries recorded an 84.90 per cent remittance performance during the period.
“The international bilateral customers … received a total invoice of $73.91 million for ancillary services provided by the MO and made a total payment of $62.75 million, corresponding to a remittance performance of 84.90 per cent,” NERC stated.
The disclosure comes against the backdrop of persistent concerns over liquidity, payment discipline and financial sustainability in Nigeria’s electricity market.
Domestic customers remit N12.75tn
While the three neighbouring countries failed to fully settle their electricity obligations, NERC said domestic bilateral electricity customers performed better, remitting N12.75tn out of the N13.20tn invoiced by the Market Operator in 2025.
This represented a 96.60 per cent remittance performance, according to the regulator.
However, the commission singled out Ajaokuta Steel Company Limited and its host community, which are classified as a special customer, for failing to make any payment towards their electricity obligations during the year.
NERC said NBET issued Ajaokuta a N4.96bn invoice, while the Market Operator issued another invoice of N500m.
The commission said it had escalated the continued non-payment to relevant Federal Government ministries in a bid to resolve the matter.
It warned that failure to settle the outstanding obligations could expose the Ajaokuta complex to disconnection by its service providers.
“Failure to settle the obligations may put the Ajaokuta complex at risk of being disconnected from its service providers (NBET and MO) on the grounds of gross indebtedness,” the commission warned.
DisCos off-take 31,251.77GWh
Beyond payment challenges, NERC reported that electricity distribution companies collectively took off 31,251.77 gigawatt-hours of electricity in 2025.
However, only 25,867.86GWh was billed to customers, producing an overall energy accounting efficiency of 82.77 per cent.
The regulator explained that energy accounting efficiency measures how effectively a DisCo accounts for the electricity it receives at its trading points.
It is calculated by comparing the amount of energy billed to customers, including metered and unmetered consumers, with the total energy supplied to the area within a given period.
The performance varied significantly among the DisCos.
Ibadan Electricity Distribution Company recorded the highest energy accounting efficiency at 88.84 per cent, while Enugu Electricity Distribution Company posted the lowest at 72.18 per cent.
NERC said the figures underscored the need for DisCos to improve their systems for tracking, billing and collecting payment for electricity supplied to their networks.
The commission tasked the distribution companies with developing strategies to raise their energy accounting efficiency.
It recommended stronger infrastructure to reduce technical losses, improved customer enumeration and service, increased metering and the deployment of technologies capable of tackling electricity theft.
The figures highlight continuing weaknesses across Nigeria’s electricity value chain, from power generation and bulk electricity trading to distribution, billing and revenue collection.
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