The project will connect six major locations across the country, with completion targeted within 18 to 24 months, as the government moves to address persistent transmission bottlenecks…….
The Federal Government has approved a $2 billion investment in a new electricity transmission project expected to provide additional capacity of at least 19,000 megawatts and strengthen power distribution across Nigeria.
The Minister of Power, Olasunkanmi Tegbe, disclosed this on Monday, saying the proposed East-West Super Grid had received presidential approval, with procurement activities already underway.
The project is expected to span six strategic locations: Funtua, Gwagwalada, Ikot-Ekpene, Benin, Epe and Ilorin, creating an expanded transmission network to support electricity delivery across different parts of the country.
Tegbe said the government was targeting completion within 18 to 24 months, describing the initiative as a major addition to existing efforts to address weaknesses in Nigeria’s electricity infrastructure.
He explained that the Super Grid would operate alongside the existing national transmission network rather than replace it, providing additional capacity and improving the movement of electricity from generation facilities to consumers.
The minister said the investment followed a technical assessment of the country’s transmission infrastructure, which uncovered significant equipment deficiencies across several power corridors.
According to him, the audit, initiated shortly after he assumed office, identified problems involving transmission towers, insulators, conductors and relays, all of which affect the reliability and efficiency of electricity transmission.
He said the findings would guide the government’s rehabilitation programme, ensuring that critical equipment is replaced based on identified infrastructure needs rather than general spending estimates.
Tegbe added that the replacement exercise would begin in the coming months following presidential approval for funding.
One of the priority projects is the restoration of the Oshogbo-Ikeja West transmission line, which he said could deliver an additional 400 megawatts into the Lagos electricity network once completed.
Beyond expanding transmission infrastructure, the government is also working to address outstanding financial obligations to electricity generation companies (GenCos), which have struggled with liquidity challenges.
Tegbe disclosed that the Federal Government had so far paid N1.23 trillion out of approximately N3.3 trillion owed to the companies, leaving an outstanding balance of about N2 trillion.
He explained that the unpaid debts had affected the ability of generation companies to meet their financial obligations to gas suppliers, creating additional constraints on electricity production.
The government is targeting the settlement of the remaining liabilities in 2027, a move expected to improve liquidity within the generation segment and support more consistent electricity supply.
The minister also identified underperforming power plants in the Niger Delta as another opportunity to increase electricity generation without necessarily developing entirely new facilities.
He said plants operated by the Niger Delta Power Holding Company (NDPHC) have a combined installed capacity of more than 3,000 megawatts but currently contribute only about 400 megawatts to the national grid.
Tegbe noted that improving the performance of these facilities, alongside resolving gas supply and transmission challenges, could significantly increase the volume of electricity available to consumers.
The minister also highlighted the Electricity Act 2023 as a major turning point in the restructuring of Nigeria’s power industry, particularly through its provisions allowing state governments and private investors to participate more actively in the electricity market.
Under the legislation, states can establish independent electricity markets and develop generation, transmission and distribution arrangements suited to their specific energy requirements.
Tegbe said some states, including Lagos, Ogun, Abia and Enugu, were already exploring different approaches, ranging from independent power generation to mini-grids and gas-fired electricity solutions.
He added that the law also provides room for bilateral electricity transactions, allowing power producers to supply willing customers directly or channel electricity into the national grid.
According to him, these opportunities are expected to encourage competition, attract fresh capital and support the recapitalisation of different segments of the electricity industry.
The minister further expressed the Federal Government’s expectation that private-sector participation in electricity transmission would expand significantly over the next two to three years.
The latest investment approval builds on the government’s broader electricity sector reform agenda, which has included efforts to stabilise the national grid, expand transmission infrastructure and improve the financial position of industry operators.
In March 2026, the Federal Government said ongoing reforms had attracted approximately $2 billion in power-sector investments and reduced industry liabilities to N146 billion. It also reported that 16 state electricity markets had been activated.
However, questions around regulatory coordination and the division of responsibilities between federal and state authorities remain important to the success of the reforms.
A PricewaterhouseCoopers (PwC) assessment in April 2026 had similarly highlighted the need for clearer regulatory frameworks and stronger coordination between different levels of government.
The proposed East-West Super Grid is therefore expected to play a significant role in addressing one of the industry’s longstanding challenges: the inability of the transmission network to efficiently deliver available electricity to consumers across the country.
