Nigeria's Cross-Border Power Debt: A Critical Overview

The article addresses the issue of cross-border power debt, specifically a debt of 17.45 billion naira owed by Benin, Togo, and Niger to Nigeria. It critiques the narrative surrounding this debt as a distraction from the actual challenges in the electricity sector.

The article notes that Nigeria's power grid operates at less than 10 percent capacity, with significant amounts of electricity not reaching Nigerian citizens. It mentions the establishment of a buyer-seller framework in 2019, which allows for direct contracts between Nigerian generating companies (Genco) and neighboring utilities.

This framework is designed to facilitate energy trade and ensure that payments are secured through letters of credit and bank guarantees. The article also highlights that the current market operates with a value of around 20 million naira per quarter for electricity, emphasizing the need for reforms to improve the reliability of power supply and address the ongoing energy crisis in Nigeria.