Nigeria’s electricity generation companies received $7.12 million and N3.19 billion from bilateral customers in the third quarter of 2025, but weak payments from international buyers continued to weigh on market liquidity, according to the Nigerian Electricity Regulatory Commission (NERC).
The regulator said international bilateral customers paid just 38.09% of invoices issued during the quarter, deepening concerns about settlement risks in cross-border power sales and the financial stability of the electricity market.
International Power Payments and Foreign Settlement Risk
NERC disclosed that three international bilateral customers paid $7.12 million out of a total $18.69 million invoiced by the Market Operator in Q3 2025.
Payments were led by Mainstream–NIGELEC with $5.7 million, while Transcorp–SBEE (Ughelli) remitted $1.42 million. The shortfall reflects a pattern of delayed settlements that continues to strain power producers.
NERC also confirmed that international customers paid an additional $7.84 million toward arrears from previous quarters.
Domestic Customers Show Stronger Payment Discipline
By contrast, domestic bilateral customers paid N3.19 billion out of N3.64 billion invoiced, translating to a strong 87.61% remittance rate.
They also paid N1.30 billion toward outstanding invoices from earlier quarters, highlighting a sharper contrast between domestic and foreign payment behaviour.
Ajaokuta Steel Remains a Chronic Defaulter
NERC flagged Ajaokuta Steel Company Limited and its host community for failing to make any payment in Q3 2025.
The company owes N1.03 billion to Nigerian Bulk Electricity Trading (NBET) Plc and N0.10 billion to the Market Operator. NERC said it has requested intervention from federal authorities to address the issue.
Why Liquidity Still Matters
Poor remittance weakens cash flow across the electricity value chain, limiting generation capacity and investment. While Nigeria issued its first Power Sector Bond under the Presidential Power Sector Debt Reduction Programme in 2025, NERC warned that payment discipline remains critical to long-term stability.
Read also Tinubu appoints Musiliu Oseni as NERC Chairman, reconstitutes power regulator board
