By John Umeh
Nigeria has entered advanced negotiations with the Export-Import Bank of China (China Exim Bank) for a $2 billion loan to finance the construction of a new “super grid”—a large-scale electricity transmission project aimed at stabilizing the nation’s power supply and supporting industrial growth.
Minister of Power Adebayo Adelabu made the disclosure at the Nigerian Economic Summit held in Abuja on Monday, October 6. He explained that the new super grid forms part of the government’s broader plan to decentralize power generation and rebuild confidence in Nigeria’s energy infrastructure.
According to Adelabu, the project will connect the country’s eastern and western regions, enabling smoother power transmission and providing consistent electricity to manufacturing and commercial clusters that have long abandoned the national grid due to its persistent instability.
“This super grid is a key part of our strategy to decentralize power generation and transmission. Many industries left the national grid because of unreliable supply — we are working to bring them back,” Adelabu said.
He confirmed that the Federal Executive Council (FEC) has already approved the financing framework, clearing the path for Nigeria to finalize negotiations with China’s Exim Bank in the coming months.
Aiming for a Stronger, More Reliable Grid
The proposed super grid, once completed, is expected to dramatically boost transmission efficiency, reduce power losses, and enhance electricity delivery to industrial zones across the country.
Nigeria’s current national grid — plagued by frequent system collapses, outdated infrastructure, and poor maintenance — has suffered repeated failures in recent years, leaving homes and factories across the nation in prolonged blackouts.
Adelabu noted that the new transmission system would help address these chronic challenges, improve grid reliability, and facilitate greater private investment in renewable and off-grid power solutions.
Power Sector Revenue on the Rise
The minister also pointed to recent tariff reforms as a positive turning point for the electricity sector. Following a rate adjustment for urban and industrial consumers, revenue in the power industry surged by 70% in 2024, with projections indicating a further 41% increase this year, reaching an estimated ₦2.4 trillion ($1.6 billion).
He emphasized that the additional revenue would be reinvested in infrastructure, maintenance, and technology upgrades to ensure long-term sustainability.
“Our focus is not just on increasing generation but on building a resilient, decentralized network capable of powering industries and homes reliably,” Adelabu added.
Building the Future of Power in Nigeria
The new super grid is part of the Tinubu administration’s long-term power reform strategy, which aims to expand access, attract investment, and restore industrial confidence.
Experts believe the $2 billion Chinese loan could become one of Nigeria’s most significant energy infrastructure partnerships in recent years, positioning the country for improved productivity, job creation, and energy security.
If successfully implemented, the project could mark a turning point in Nigeria’s decades-long struggle with unstable electricity — transforming the nation’s power grid from a symbol of failure into a foundation for sustainable economic growth.
