Nigeria's cross‑border electricity trade shows ₦17.45 bn charge is merely a service fee

Nigeria’s electricity exports to Benin, Togo and Niger generate a headline‑grabbing figure of about ₦17.45 billion each quarter. The amount, however, is not an unpaid debt but a residual service charge that covers regulators, the transmission company, the bulk trader and the market operator – roughly $20 million.

The trade itself operates on guaranteed bilateral contracts where neighbouring utilities post letters of credit before any megawatt is supplied. About 350 MW of power is exported under these contracts, and the commercial model is profitable and reliable. Analysts argue the focus should shift to expanding similar guaranteed contracts for Nigerian industry, agro‑processing zones and mini‑grids, leveraging the disciplined cash‑flow structure that already exists.