The neighbours’ ‘debt’ is a residual service charge on a trade that Nigeria disciplined and guaranteed back in 2019. The real opportunity is to scale the commercial model that already works.
Every few months, the same headline returns: Benin, Togo and Niger owe Nigeria billions of naira for electricity. This quarter it is about ₦17.45 billion. It arrives with the same wave of indignation, that we are keeping our neighbours in light while our own citizens sit in darkness. It makes for a good headline. It is also, on the numbers, a non-story, and it distracts from a far more hopeful one.
Begin with what that figure actually is. The payment risk it seems to describe was dealt with years ago. Under the Eligible Customer reforms of 2017 and the Willing Buyer, Willing Seller framework of 2019, cross-border and large-industrial electricity supply was moved onto direct, guaranteed bilateral contracts entered by neighbouring utilities directly with Nigerian Generating Companies (Gencos). To buy power this way, a customer must post a letter of credit or a bank guarantee to the market operator before a single megawatt flows. That is precisely why the energy trade with our neighbours works: it was designed to be commercially disciplined, and it runs on surplus capacity, not on power taken from Nigerian homes, and is capped at less than 10 per cent of the power on the grid.
