Electricity remains a fundamental driver of economic activity, industrial expansion, and regional integration. Across West Africa, cross-border power trade is emerging as a key mechanism for strengthening economic cooperation. The evolving energy relationship between Nigeria and Togo reflects this trend, as rising electricity demand in Lomé and across the Togolese economy drives increased reliance on imported power.
Togo has formally requested additional electricity imports from Nigeria following discussions between the Niger Delta Power Holding Company (NDPHC) and Compagnie Énergie Électrique du Togo (CEET). The Togolese utility currently receives approximately 75 megawatts (MW) of power from Nigeria.
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This request highlights a broader regional challenge: electricity demand across West Africa is growing faster than domestic supply. As a result, cross-border energy trade is becoming an essential pillar of economic development. CEET has commended Nigeria’s consistent power deliveries for supporting industrial activity in Togo. In response, NDPHC Managing Director Jennifer Adighije reaffirmed Nigeria’s readiness to increase supply, while emphasising the importance of a sustainable payment framework to ensure long-term stability.
Nigeria operates one of Africa’s largest electricity systems, yet continues to face a significant energy access gap. Installed capacity ranges between 12,000 and 13,500 MW, but actual generation often falls below 5,000 MW. This shortfall leaves an estimated 85 million people without access to grid electricity.
As a result, reliance on self-generation remains widespread. Nearly half of electricity consumption is supplied by private generators, serving around 97 million people. The generation mix is dominated by natural gas, which accounts for approximately 79%, followed by hydropower at 20%, while solar and other renewables contribute less than 1%. Tariffs remain relatively low at about $0.09 per kWh, compared with higher rates in countries such as Ghana ($0.14) and Côte d’Ivoire ($0.11).
Despite these domestic constraints, Nigeria continues to export electricity to neighbouring countries, reinforcing its role as a regional energy stabiliser.
As Africa’s largest economy, Nigeria relies heavily on electricity to sustain both industrial output and service sector growth. In 2025, GDP expanded by 3.87%, up from 3.38% in 2024, reflecting moderate economic recovery. Nominal GDP increased from ₦94.05 trillion in the first quarter to ₦100.73 trillion in the second quarter of the year.
The non-oil sector remains dominant, contributing nearly 96% of GDP. Services account for more than 55% of economic output, while agriculture recorded growth of around 4% in late 2025. However, unreliable power supply continues to constrain productivity across these sectors.
For Togo, electricity imports from Nigeria provide a critical buffer against domestic supply limitations. Rising demand—driven by industrial expansion, urbanisation, and rural electrification programmes, particularly in Lomé—has made reliable power essential. Nigerian electricity supports industrial operations, enables small business growth, and sustains public infrastructure, helping to stabilise Togo’s grid and support its broader economic transformation.
Nigeria’s role as a regional energy anchor is rooted in a long and complex history of electricity development, dating back to 1896. From early colonial generation systems to post-independence hydropower expansion and the well-known NEPA era of chronic outages, the sector has undergone multiple phases of reform.
The 2005 power sector privatisation unbundled generation and distribution, while the Electricity Act 2023 introduced a new framework allowing state governments to participate directly in electricity markets. This reform opens the door to decentralised investment and increased competition.
However, significant challenges persist, including transmission bottlenecks, frequent grid collapses, and financial instability among distribution companies, all of which continue to limit the sector’s full potential.
Even so, Nigeria’s strategic importance within the West African Power Pool remains clear. By supplying electricity to countries such as Benin, Niger, and Togo, it helps reduce reliance on expensive and polluting diesel generation.
Looking ahead, Nigeria is positioning itself as a leader in Africa’s evolving energy landscape. Its vast natural gas reserves, combined with growing investment in solar and hydropower, offer a pathway to expanded capacity. At the same time, deeper regional integration is strengthening its role as a key supplier within West Africa.
Togo’s request for increased imports underscores a wider reality: energy integration is no longer optional but essential. As demand continues to rise, Nigeria’s power sector has the potential to evolve from a constrained domestic system into a central engine of regional stability, cooperation, and economic growth.
