The financial situation surrounding the Nachtigal hydroelectric dam is causing significant concern. Unpaid invoices from the Cameroonian State to Nachtigal Hydro Power Company (NHPC) have reached nearly 70 billion FCFA. This debt has accumulated progressively, with arrears already amounting to 53 billion FCFA between August and November 2025. Since the beginning of January 2026, new monthly billings of approximately 10 billion FCFA have been added, representing about seven months of arrears, according to an institutional source close to the matter.
This accumulation of unpaid bills threatens the financial stability of the project. NHPC has 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, jeopardizing the coverage of operating expenses and debt service. The reserve account for loan repayment was not funded for December 2025, placing NHPC in default with its lenders.
An emergency meeting was held in Paris on January 27, 2026, bringing together shareholders and lenders to examine the financial risk. Lenders refused to establish an operational reserve and are conditioning any future flexibility. Exchanges between Minee, Minfi, and NHPC resulted in commitments: clarification of budgetary commitments in the 2025 Finance Law, replenishment of the letter of credit from Société Générale Paris, definition of a repayment schedule, and monitoring of the work to strengthen the electricity networks.
To secure payments, Minfi has been negotiating since the fourth quarter of 2025 to establish a financial guarantee of 100 billion FCFA in the form of a revolving fund with Société Générale Cameroun and other local banks. 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 Cameroun, and Access Bank have expressed interest in joining the fund, with potential commitments totaling an additional 42 billion FCFA. This mechanism would allow the State to pay invoices more regularly, thus avoiding the use of the initial letter of credit (SBLC), which is almost exhausted. Payment defaults by Éneo have already led NHPC to activate this SBLC for 55 billion FCFA out of the planned 56 billion FCFA.
Since the dam was put into service, NHPC invoices Éneo 10 billion FCFA per month, whether the energy is consumed or not. Faced with cash flow difficulties, Éneo has not met its obligations, forcing NHPC to activate the guarantee lodged with Société Générale Paris. Éneo reportedly paid 1 billion FCFA recently, an amount lower than the accumulated arrears.
The stability of NHPC's cash flow and the continuity of the dam's operation depend on the State's decisions, pending the full mobilization of financial mechanisms. Nachtigal, representing an investment of 786 billion FCFA, is expected to increase Cameroon's installed capacity by 30% and strengthen the share of hydroelectricity. Eneo, Cameroon's electricity distributor, had a debt of 800 billion FCFA at the end of 2024, posing a major fiscal risk to the State.
