Nigeria is in talks with China’s Export-Import Bank for a $2 billion loan to fund the construction of a new “super grid”, a major power transmission network designed to tackle the country’s long-running electricity crisis.
Minister of Power, Adebayo Adelabu, revealed the plan at an economic summit in Abuja, noting that the grid will serve both eastern and western regions, home to many large businesses and industries.
“This is part of efforts to decentralise power generation and encourage big commercial users, who left the grid due to its unreliability, to return,” Adelabu said.
According to Bloomberg, the Federal Executive Council has approved the loan request, while negotiations with China’s Eximbank are progressing.
Nigeria generates around 13,000 megawatts, but the current national grid can only transmit a third of that, and even that limited supply is unreliable.
Frequent grid failures leave homes and businesses in the dark, forcing many to rely on costly self-generated power.
In contrast, South Africa, with a population just a quarter of Nigeria’s, has over 70,000 megawatts in installed capacity.
Experts estimate that nearly 50% of Nigeria’s electricity consumption now comes from private generators, a costly and unsustainable workaround.
The super grid project is expected to Improve power distribution, especially to industrial hubs, reduce dependence on generators, boost economic activity and investor confidence and part of Tinubu’s Economic Agenda.
The project aligns with President Bola Tinubu’s broader economic reforms, which include Removing fuel subsidies, overhauling tax laws, increasing oil production and introducing new power sector policies.
One such reform allowed electricity providers to raise tariffs for customers with stable power, a move Adelabu says increased revenues by 70% in 2024, with projected earnings of ₦2.4 trillion ($1.6 billion) in 2025, a further 41% increase.
“The new grid is critical to building a reliable power system and restoring confidence in the national electricity supply,” Adelabu added.
