The Federal Government is in advanced talks with China’s Export-Import Bank for a $2 billion loan to finance the construction of a new “super grid” aimed at resolving Nigeria’s chronic power shortages and strengthening electricity transmission across the country.
Minister of Power, Adebayo Adelabu, revealed the plan on Monday during an economic summit in Abuja, describing the project as a major step in the government’s strategy to decentralise power generation and restore confidence among industrial consumers who have abandoned the national grid due to its persistent instability.
According to Adelabu, the proposed super grid will serve as a critical backbone for the nation’s electricity network, linking the eastern and western regions where most of Nigeria’s large-scale industries operate. The goal is to ensure more reliable power supply to key industrial zones, encourage manufacturing growth, and drive economic productivity.
“It’s part of plans to decentralise power generation in Nigeria and get the heavy commercial users that left the power grid because of its unreliability to return,” Adelabu said.
Nigeria’s national grid has suffered frequent collapses over the years, largely due to inadequate generation capacity, transmission bottlenecks, and recurring technical faults, resulting in widespread outages and losses for businesses and households alike.
The new transmission infrastructure, Adelabu noted, is expected to boost transmission efficiency, reduce system failures, and deliver stable electricity to regions that drive the country’s industrial output. He added that the Federal Executive Council (FEC) has already approved funding for the ambitious project, pending finalisation of the loan agreement with China’s Exim Bank.
The minister also highlighted progress in electricity sector reforms, revealing that recent tariff adjustments for urban consumers have led to a 70% increase in industry revenue in 2024. He projected that revenue will rise further by 41% to ₦2.4 trillion ($1.6 billion) by the end of the year, providing additional support for infrastructure upgrades and sector expansion.
The proposed super grid forms part of a broader push by the Tinubu administration to revitalise Nigeria’s power sector, attract foreign investment, and lay the groundwork for industrial growth. If secured, the China-backed loan would mark one of the most significant investments in Nigeria’s power transmission network in decades.
