Nigeria's Cross-Border Power Debt: Urgent Reforms Needed

The article addresses the issue of Nigeria's cross-border power debt, specifically the 17.45 billion naira owed to neighboring countries such as Benin, Togo, and Niger. It notes that while Nigeria struggles with power supply, neighboring countries continue to receive electricity, leaving many Nigerian citizens without power.

The article mentions that reforms initiated in 2017 aimed to create a framework for direct contracts between Nigerian generating companies (Gencos) and neighboring utilities. It highlights that as of June, 228 megawatts of power were directly supplied to Nigerian industries through bilateral contracts, bypassing the weak distribution network.

The article also points out that losses within Nigeria's power grid reach 30-40%, costing hundreds of billions of naira quarterly. It stresses the urgency of fixing the cross-border trade and enhancing the commercial discipline within the power sector to improve reliability and efficiency.