By Ayomide Otitoju
Nigeria is in talks with the Export-Import Bank of China for a $2 billion loan to finance the construction of a new “super grid” aimed at addressing the country’s chronic power shortages, the Minister of Power, Adebayo Adelabu, has disclosed.
Speaking at an economic summit in Abuja on Monday, Adelabu said the project forms part of the government’s broader plan to decentralise power generation and attract back large industrial users who had abandoned the unreliable national grid.
“The new super grid will link the eastern and western regions of the country, where most of Nigeria’s industrial consumers are located,” he said. “It’s part of plans to decentralise power generation and get heavy commercial users that left the grid to return.”
Nigeria’s national grid has suffered repeated collapses over the years, caused by limited generation capacity, transmission bottlenecks, and technical faults, leading to widespread blackouts and industrial disruptions.
Adelabu explained that the proposed infrastructure will significantly enhance transmission efficiency and improve electricity supply to industrial hubs. He confirmed that the Federal Executive Council (FEC) has already approved financing for the project.
The minister also noted that recent tariff adjustments for urban consumers have strengthened the sector’s financial position, with industry revenues rising by 70% in 2024 and projected to grow by another 41% to N2.4 trillion ($1.6 billion) this year.
The proposed super grid, once completed, is expected to be a major milestone in Nigeria’s efforts to modernise its power infrastructure and stimulate industrial productivity.
