The financial situation surrounding the Nachtigal hydroelectric dam is raising significant concerns. According to sources at Investir au Cameroun, the Cameroonian government's payment arrears to Nachtigal Hydro Power Company (NHPC) are now approaching 70 billion FCFA. This debt has accumulated gradually, with 53 billion FCFA already accrued between August and November 2025. Since the beginning of January 2026, new monthly invoices of approximately 10 billion FCFA have been added, representing about seven months of arrears, according to an institutional source close to the matter. NHPC has declined to comment on the situation.
This accumulation of unpaid bills is affecting the project's financial equilibrium. In early 2026, NHPC alerted the Ministry of Water and Energy (Minee) and the Ministry of Finance (Minfi) about the deterioration of its cash flow. By the end of January 2026, available resources were almost exhausted, threatening the coverage of operating expenses and debt service. The reserve account for loan repayments was not funded in December 2025, placing NHPC in default with its lenders.
On January 27, 2026, shareholders and lenders met in Paris to assess the financial risk. A source who participated in the discussions indicated that the lenders refused to establish an operational reserve and are conditioning any future flexibility. Exchanges of letters between Minee, Minfi, and NHPC revealed that the meeting resulted in commitments, including clarifying budgetary commitments in the 2025 Finance Law, replenishing the letter of credit from Société Générale Paris, defining a repayment schedule, and monitoring the progress of electrical grid reinforcement work.
Since the fourth quarter of 2025, Minfi has been negotiating with Société Générale Cameroon and other local banks to establish a financial guarantee of 100 billion FCFA in the form of a revolving fund to ensure regular payments to NHPC. An initial mobilization of 20 billion FCFA was obtained from Société Générale and CCA Bank via a credit agreement signed on November 25, 2025, but NHPC reportedly received only about 10 billion FCFA in December 2025. Afriland First Bank, UBA, SCB Cameroon, and Access Bank have expressed interest in joining the fund, with potential commitments totaling an additional 42 billion FCFA.
This mechanism aims to allow the State to settle invoices more regularly, thus avoiding the use of the initial letter of credit (SBLC), which is almost exhausted. Éneo's payment defaults have led NHPC to activate this SBLC for 55 billion FCFA out of the planned 56 billion FCFA. Since the dam's commissioning, NHPC invoices Éneo 10 billion FCFA per month, whether the energy is consumed or not, according to the contract. Éneo, facing cash flow difficulties, has not met its obligations, forcing NHPC to activate the guarantee lodged with Société Générale Paris. Éneo reportedly recently paid 1 billion FCFA, an amount less than the accumulated arrears.
Pending the full mobilization of financial mechanisms, the stability of NHPC's cash flow and the continuity of dam operations depend on state decisions. The Nachtigal dam, costing 786 billion FCFA, is expected to increase Cameroon's installed capacity by 30% and strengthen the share of hydroelectricity in the national energy mix.
In October 2025, the Cameroonian government was already negotiating with local banks to put in place a financial guarantee to ensure payments to NHPC. Éneo's financial situation remains fragile, with a total debt of 800 billion FCFA at the end of 2024, including 500 billion to its suppliers.
