Following a recent proposal by the Federal to expand the exportation of electricity to neighbouring countries, a familiar national debate may be in the offing. Should Nigeria sell power to neighbouring countries when millions of its citizens live in darkness?
While the policy may appear like an economic opportunity and regional leadership benefit, underneath lies a delicate balance between revenue generation and domestic responsibility.
Nigeria already exports electricity to Niger, Benin and Togo under the West African Power Pool, WAPP. The interconnection between Nigeria and Benin (which also supplies Togo) via the CEB-NEPA Power Interconnection Project took off in 2007, while supply to Niger Republic began in 2011. By early 2025 alone, combined export value for electricity to Benin and Niger amounted approximately to $112 million. Thus, it makes great economic and diplomatic sense to want to expand, since exports generate foreign exchange earnings, diversify national revenue beyond oil and help stabilise the finances of power generation and transmission companies that currently struggle with liquidity. This no doubt provides much needed relief for a sector burdened by debt and inefficiency.
Besides revenue generation, exporting electricity to more neighbouring countries will strengthen Nigeria’s geopolitical posture and influence as the Giant of Africa, foster regional stability, and position Nigeria as the undisputed energy hub of the sub-region. Such a market may also attract private investment into generation infrastructure, particularly renewable and gas powered plants, leading to more job creation and improved technical capacity.
The harrowing experience of ordinary Nigerians with Nigeria’s electricity supply which remains grossly inadequate or almost nonexistent, however, calls for concern. With an installed capacity that far exceeds what is actually delivered, frequent grid collapses, load shedding and erratic power supply are everyday realities for households and businesses. As a result, many rely heavily on expensive generators which drive up cost of living, production cost and worsen inflation.
Currently, Nigeria’s power generation officially stands at between 13,000-13,600 MW, though industry critics insists it is much lower at about 4,000-5000 MW, with a substantial amount of it also being lost during transmission and distribution processes. Exporting electricity in this context appears insensitive and unjust.
The immediate concern of ordinary Nigerians is that power export will worsen domestic shortage and justify higher tariffs. Nigerians may end up subsidising electricity for other countries while paying more at home for less reliable supply. Important still is the issue of accountability, enforcement and transparency, as past export agreements have reportedly resulted in unpaid debts by the beneficiary countries. The trio of Benin, Togo and Niger reportedly owed Nigeria approximately $17.8 million – equivalent to N25 billion in the third quarter of 2025 alone, according to reports recently released by the Nigerian Electricity Regulatory Commission, NERC. Inadequate information about the actual amount of energy being sold to the trio, also makes these transactions more complex raising questions on how much revenue Nigeria actually earns.
The fact is that power export policies that ignore domestic deficits could deepen public distrust and fuel social discontent. Moreover, without massive investment in transmission infrastructure, exporting power could further strain an already fragile grid, making life more difficult for households and businesses.
The way forward lies in sequencing and safeguards and not outright rejection. Power export should only expand in tandem with verifiable improvement in domestic supply. Export transactions must be transparently managed, and commercially sound, so that revenue is reinvested directly into improving power generation, transmission and distribution within Nigeria. Power export must not come at the expense of power for Nigerian homes and businesses.
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