Nigeria’s electricity export revenue shrinks 17% despite regional demand

Nigeria’s earnings from electricity exports to neighbouring West African countries fell by 17 percent in the first quarter of 2026, despite sustained regional demand for power, highlighting persistent payment challenges and supply constraints facing the country’s electricity sector.

Data from the Nigerian Electricity Regulatory Commission (NERC) showed that electricity export revenue declined to $4.82 million in the first quarter of 2026 from $5.8 million remitted in the same quarter of 2025, representing a drop of $0.98 million.

The three international bilateral customers supplied by electricity generating companies (GenCos) in the Nigerian Electricity Supply Industry (NESI) made the payment against the cumulative invoice of $17.48 million issued by the market operator (MO) for services rendered in the first quarter of 2026, translating to a remittance performance of 27.57 percent.

Nigeria exports electricity to Société Béninoise d’Énergie Électrique (SBEE), Compagnie Énergie Électrique du Togo (CEET), and Société Nigérienne d’Électricité (NIGELEC).

“These remittances are based on reconciled market settlement submitted to the commission as of June 24, 2026,” the Commission stated.

During the quarter in review, the three international and nine domestic bilateral customers made payments of $6.64 million and N2,589.07 million, respectively, towards outstanding MO invoices from previous quarters.

The commission stated, “Specifically, the MO received a total of $4.05 million from Société Béninoise d’Energie Electrique (SBEE), comprising payments for Ughelli ($3.28 million) and Paras ($0.77 million).

“In addition, $1.87 million was received from Mainstream – Société Nigériee d’Electricité (NIGELEC), and $0.72 million from Paras – Compagnie Energie Electrique du Togo (CEET).”

Togo seeks more electricity from Nigeria as power demand rises

Togo stated plans to increase electricity imports from Nigeria as rising industrial activity and expanding access to electricity drive higher power demand, highlighting Nigeria’s growing role as a regional electricity supplier despite persistent shortages at home.

The request was made during a visit by a delegation from CEET to the Niger Delta Power Holding Company (NDPHC), according to a statement issued last month.

The Togolese delegation, led by Débo K’mba Barandao, CEET Director-General, held discussions with NDPHC on expanding an existing bilateral electricity supply arrangement under which Togo currently imports about 75 megawatt-hours of electricity from Nigeria.

Barandao said Nigerian electricity has become critical to maintaining a stable power supply across Togo, supporting households, businesses and public institutions.

“The imported electricity has played a significant role in sustaining a stable power supply and economic activities across Togo,” he said.

He noted that electricity demand has risen sharply following the connection of new residential, commercial and industrial consumers, coupled with the government’s efforts to expand electricity access nationwide.

“In view of this development, CEET is strongly interested in increasing the volume of electricity it off-takes from NDPHC,” Barandao said, adding that additional imports would support the country’s electrification programme and improve supply reliability.

Responding, Jeifer Adighije, managing director of NDPHC, reaffirmed the company’s commitment to deepening electricity trade within West Africa.

She said NDPHC, through its National Integrated Power Project (NIPP) generation plants, possesses sufficient installed capacity to support increased electricity exports to neighbouring countries under commercially viable arrangements.

According to her, expanding cross-border electricity trade aligns with the broader regional integration objectives of the Economic Community of West African States (ECOWAS) and ongoing efforts to strengthen the West African electricity market.

However, Adighije stressed that any increase in exports must be backed by robust commercial agreements and guaranteed payment mechanisms.

“A reliable payment framework will safeguard NDPHC’s interests and enable continued support for regional energy stability through power exports,” she said.

She added that credible financial guarantees and structured settlement arrangements would reduce the financial risks associated with cross-border electricity transactions and ensure the long-term sustainability of the partnership.