The Federal Government is in advanced negotiations with China’s Export-Import Bank for a $2 billion loan to construct a new electricity super grid, a major step toward solving Nigeria’s chronic power shortages and stabilizing supply to industries.
The project, already approved by the Federal Executive Council, is designed to overhaul the nation’s transmission infrastructure and decentralize power generation.
Minister of Power Adebayo Adelabu revealed the plan at an economic summit in Abuja, emphasizing that the initiative would help re-attract industries and large power consumers that disconnected from the grid due to its poor reliability. “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.
According to Bloomberg, the proposed super grid will strengthen electricity transmission across Nigeria’s eastern and western corridors, home to most of the country’s industrial and commercial activity.
Government officials confirmed that discussions with China’s Exim Bank are progressing, signalling strong commitment to expanding the grid’s capacity and efficiency.
Nigeria currently generates about 13 gigawatts of electricity, but only a third reaches end-users due to frequent system collapses and poor infrastructure.
By comparison, South Africa, with just a quarter of Nigeria’s population, boasts around 70 gigawatts of installed capacity, underscoring the scale of Nigeria’s power deficit.
The unreliable national grid has forced industries and households to rely heavily on self-generation, accounting for nearly half of total power consumption.
The super grid aims to reverse that trend by improving transmission reliability, stabilizing supply to industrial zones, and supporting Nigeria’s manufacturing competitiveness.
Since assuming office in 2023, President Bola Tinubu’s administration has pushed bold reforms, scrapping fuel subsidies, reforming taxes, and improving security in oil regions, to attract investment and revive growth.
Tariff adjustments for urban consumers have already enhanced power sector revenues, with Adelabu noting a 70% surge in distribution company income in 2024, projected to reach ₦2.4 trillion ($1.6 billion) this year.
If completed, the $2 billion power super grid could mark a transformative leap for Africa’s biggest economy, reducing energy costs, improving productivity, and driving the country closer to industrial self-sufficiency.