• Cameroon owes NHPC nearly CFA70 billion in unpaid invoices

• Dam operator defaulted after reserve account unfunded

• State negotiating CFA100 billion revolving guarantee fund

Cameroon’s financial obligations tied to the Nachtigal hydroelectric dam are drawing concern. According to information obtained by Business in Cameroon, unpaid state invoices to Nachtigal Hydro Power Company (NHPC) now total nearly CFA70 billion (around $125.73 million).

The debt accumulated gradually. Between August and November 2025, arrears had already reached CFA53 billion. Since early January 2026, additional monthly billings of around CFA10 billion have been added, representing about seven months of unpaid invoices, according to an institutional source familiar with the matter. Contacted for comment, independent power producer NHPC declined to respond.

The rise in unpaid bills has reportedly strained the project’s financial balance. Early this year, NHPC formally alerted the Ministry of Water and Energy (Minee) and later the Ministry of Finance (Minfi) about its deteriorating cash position. By late January 2026, available liquidity had reportedly been nearly exhausted, leaving the company unable to sustainably cover operating costs and debt servicing obligations.

The reserve account dedicated to loan repayment was not funded for December 2025, placing NHPC in default with its lenders.

Shareholders and creditors met in Paris on January 27, 2026, to assess the financial risk. “Lenders refused the creation of an operational reserve and are conditioning any future flexibility,” said a source present at the discussions.

Correspondence between Minee, Minfi and NHPC indicates that the meeting nonetheless resulted in several commitments: clarification of budget allocations included in the 2025 Finance Law; replenishment of the Société Générale Paris letter of credit; agreement on a repayment schedule and future disbursements under the Revolving Credit Facility; and monitoring of ongoing grid reinforcement works.

A revolving mechanism to secure payments

Since the fourth quarter of 2025, the Ministry of Finance has been negotiating with Société Générale Cameroun and several local banks to establish a CFA100 billion financial guarantee structured as a revolving fund to ensure regular payment of NHPC invoices.

Documents reviewed by Business in Cameroon show that an initial CFA20 billion was mobilized from original lenders — Société Générale and CCA Bank — under a credit agreement signed on November 25, 2025. However, NHPC reportedly received only about CFA10 billion in December 2025.

Following that delay, Afriland First Bank, UBA, SCB Cameroun and Access Bank expressed interest in joining the fund. Their files were submitted to credit committees, with banks given two weeks to communicate decisions. If approved, their commitments could total an additional CFA42 billion: Afriland First Bank (CFA10 billion), UBA (CFA12 billion), SCB Cameroun (CFA10 billion) and Access Bank (CFA10 billion).

The mechanism is designed to allow the state to pay invoices more regularly without relying on the standby letter of credit (SBLC), which is now almost fully used. Repeated payment defaults by Eneo have already led NHPC to activate the SBLC for CFA55 billion out of the CFA56 billion initially provided, according to sources.

Eneo under pressure

Since the dam began operations, with an installed capacity of 420 MW, NHPC has billed Eneo CFA10 billion per month, whether the electricity produced is consumed or not, in line with the contract signed with the state.

Facing significant liquidity constraints, Eneo has not fully met its obligations. In the absence of alternative financing arrangements, the utility forced NHPC to activate the guarantee held at Société Générale Paris. According to sources, Eneo recently paid CFA1 billion, well below the accumulated arrears.

Pending the full mobilization of financial mechanisms, NHPC’s cash stability and the continuity of dam operations remain closely dependent on government decisions.

Nachtigal represents an investment of CFA786 billion. The plant is expected to increase Cameroon’s installed power capacity by 30% and strengthen the share of hydropower in the national energy mix.

Amina Malloum, with Business in Cameroon