Why does Nigeria export electricity to Niger? Here’s all you need to know
Controversies have trailed the report that Nigeria has cut the supply of electricity to the embattled Niger Republic as part of measures to put the coup leaders under pressure and relinquish power.
Niger, on July 26, 2023, became the fourth country in West Africa under a military regime after a coup led by General Abdourahmane Tchiani ousted President Mohamed Bazoum.
Negotiations to restore Mohamed Bazoum, led by President Bola Tinubu, who was elected Chairman of the Economic Community of West African States (ECOWAS) on June 9, 2023, proved to be unsuccessful, with the Tchiani-led military government planning to recall the Nigerien Ambassador to Nigeria.
However, the report that Nigeria supplies electricity to three countries in West Africa, including Niger, has been met with criticism, as many wonder why Nigeria supplies power to other countries while 43% (85 million) of people living in the country are not connected to the national grid.
A bilateral Agreement to prevent Benin, Togo, and Niger from building dams
While there are limited sources on when Nigeria signed a bilateral agreement with three border countries, Benin, Togo, and Niger, to prevent the countries from building dams, in return for the supply of electricity, the agreement, multiple sources show, has been in existence for more than nine years.
A bilateral agreement between two countries is a formal and legally binding pact or treaty that is negotiated and agreed upon by two sovereign nations.
In 2015, during a meeting with the Transmission Service Provider and Independent System Operator for the Republic of Togo and Benin Republic, Sam Amadi, former chairman of the Nigerian Electricity Regulatory Commission (NERC), assured the countries that Nigeria would “respect bilateral relations between her neighboring countries of Togo, Benin Republic, and Niger Republic,” as reported by The Guardian newspaper. In 2017, a new set of agreements was signed between the Nigerian government and Niger and the Republic of Benin. Also, in 2019, the Nigerian government renegotiated new terms for the supply of electricity to Niger, Benin, and Togo.
What is the nature of the agreement?
While seven northern states – Kebbi, Sokoto, Zamfara, Katsina, Jigawa, Yobe, and Borno – share borders with the Niger Republic, the landlocked country with a population of 25 million people is one of the five countries in Africa that the Niger River passes through.
The Niger River, the third-largest river in Africa, supplies water to Nigeria’s biggest dam, the Kainji Dam, located in Niger State, Nigeria. It is believed that if the Niger Republic builds a dam in the Niger River, it will reduce the flow of water into Kainji dam, Shiroro dam, and Jebba dam, thereby reducing over 760 megawatts of electricity generation of the dams, which is reportedly unstable due to drought.
According to Nnaemeka Ewelukwa, the managing director of Nigerian Bulk Electricity Trading (NBET), while fielding questions from the House of Representatives in 2021, the building of dams by the Niger Republic, which is upstream of the Niger River, will cause a major crisis for Nigeria.
“At the heart of the transactions is the issue of the damming of the river. We have dammed the river, and if we don’t provide electricity to countries that are upstream on the river, they can also build their dams, which will create a major crisis for the country. So, there is a strategic reason. If they are able to dam the river upstream, we are in trouble,” he said.
The supply of electricity to Nigeria’s neighboring countries is also meant to be a source of revenue, as Niger, Benin, and Togo are meant to remit stipulated amounts for the electricity they receive from Nigeria.
However, these countries appear to have been defaulting on the bilateral agreement binding them and Nigeria.
In 2021, the Nigerian Electricity Regulatory Commission (NERC) said that Niger, Benin, and Togo, along with other “special customers,” failed to remit a total of N770 million in the second quarter of 2021. Also, in 2020, while debunking a news report (not Neusroom), that Nigeria exported $81.4 billion in electricity to the three countries on credit, Senior Special Assistant to the former President Muhammadu Buhari on Media and Publicity, Garba Shehu, confirmed that “Niger owes only $16 million and Benin, $4 million” to Nigeria.
While it remains unclear if the $22 million owed by Niger and Benin, as claimed by Garba Shehu in 2020, has been cleared, a quarterly report by NERC shows that out of $50.9 million worth of electricity Nigeria exported in 2022, Togo, Benin, and Niger failed to remit $18.29 million for electricity consumed.
Commenting on the political implication of Nigeria cutting electricity supply to Niger, Nuesroom political analyst, Robert Ekat said reneging on the agreement could be considered as a breach of the bilateral agreement.
“While there can be an argument that the agreement was had with a democratically elected govt of Niger, and that the military takeover is a sufficient ground to not honour the agreement, the disconnection raises important questions that Nigeria needs to properly consider,” he said.
“One point must be noted, and it is that it’s a wake-up call for Niger to expedite action on its Dam project and become self-sufficient with electricity. What are the implications for Nigeria if Niger builds its dam and waterflow is blocked to the Nigerian dams?” Ekat added.
