Nigeria's electricity regulator has taken action to address domestic supply issues by instructing the grid operator to reduce supplies to international customers. The Nigerian Electricity Regulatory Commission issued a directive aimed at managing the grid's supply, prioritizing domestic customers over international ones. This decision places a cap of 6 percent on the total available grid generation for international off-takers for the next six months. Nigerian power firms engage in bilateral contracts with neighboring African countries, including Niger, Togo, and Benin, as well as with domestic industries and government departments, to supply energy. However, challenges arise as these companies often face delayed payments, exacerbating Nigeria's already prevalent power cuts.
The directive follows concerns over the grid operator's approach, which prioritized exports over domestic supply, leading to hardships for Nigerians. With the combined unpaid debts totaling $12.02 million owed by international customers to Nigerian power companies, the regulator aims to rectify the situation.