The Federal Government has entered discussions with the Export-Import Bank of China (China Exim Bank) for a $2 billion loan to finance the construction of a national super grid aimed at addressing Nigeria’s long-standing electricity challenges.
It said that the initiative is part of ongoing efforts by the Tinubu administration to stabilize power supply and support industrial growth across the country.
The Minister of Power, Adebayo Adelabu, who disclosed this development while responding to questions from journalists yesterday in Abuja after the meeting between both sides, stressed that the fund is intended to ensure a more reliable and efficient power distribution nationwide.
Adelabu explained that the super grid project would boost electricity transmission capacity, reduce system collapses, and enhance industrial productivity. He added that the network will allow industries currently generating their own power to reconnect to the national grid once stability is achieved.
Nigeria continues to grapple with persistent power shortages and frequent grid failures. Despite an installed generation capacity of over 13,000 megawatts, only between 4,500 and 5,000 megawatts reach consumers due to infrastructural decay, poor maintenance, and vandalism.
At present, more than 200 companies, including major industrial firms, rely on self-generated electricity producing about 6,500 megawatts—a figure that surpasses the actual power delivered through the national grid. Experts believe the new project could significantly reduce this dependence and improve power access for businesses and households.
The Tinubu administration has introduced several reforms since 2023, including tariff adjustments and the removal of fuel subsidies, to make the power sector more financially sustainable. Officials say the super grid project will complement these measures by improving supply reliability.
However, analysts have cautioned that Nigeria must negotiate favorable loan terms to avoid deepening its debt profile. They also emphasized the importance of transparency, effective project execution, and maintenance to ensure the project delivers tangible results.
Negotiations with China’s Exim Bank are still ongoing, and details of the financing structure are yet to be finalized. If approved, the $2 billion loan would represent one of the most significant investments in Nigeria’s power transmission infrastructure in recent years.
