Nigeria is seeking a $2 billion loan from China’s Export-Import Bank to fund the construction of a new “super grid” aimed at addressing the country’s long-standing electricity shortages.
The Minister of Power, Adebayo Adelabu, disclosed this during an economic summit in Abuja on Monday, explaining that the project is a key component of the Federal Government’s plan to modernize and decentralize power generation across the nation.
According to Adelabu, the proposed super grid will connect Nigeria’s eastern and western regions — areas that host most of the country’s major industrial users. He said the initiative is designed to attract back heavy commercial consumers who previously disconnected from the national grid due to its instability and frequent collapses.
“It’s part of plans to decentralize power generation in Nigeria and get the heavy commercial users that left the power grid because of its unreliability to return,” Adelabu stated.
Nigeria’s power grid has suffered multiple nationwide collapses over the years, often caused by poor generation capacity, aging infrastructure, and technical inefficiencies. The new grid, the minister said, will significantly enhance transmission efficiency and ensure stable power delivery to key industrial zones.
Adelabu further revealed that the Federal Executive Council (FEC) has already granted approval for the financing of the project. He noted that the sector has begun to show signs of recovery following recent tariff adjustments for urban consumers, which have improved industry revenues by about 70% in 2024.
He added that the power sector’s total revenue is projected to grow by an additional 41%, reaching an estimated N2.4 trillion (about $1.6 billion) before the end of the year.
The minister assured stakeholders that the new “super grid” project aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda to boost industrial productivity, attract investment, and ensure a sustainable power supply across the country.