BusinessNews

Nigeria, Japan in Talks for $238m Loan to Boost National Power Grid

The deal, backed by JICA, will expand transmission lines, add substations, and strengthen renewable energy access.

The Federal Government is in advanced discussions with the Japan International Cooperation Agency (JICA) for a $238 million loan aimed at expanding Nigeria’s electricity transmission network and strengthening the national grid.

The talks formed part of Nigeria’s engagements at the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan, where President Bola Tinubu led the delegation, accompanied by the Minister of Power, Adebayo Adelabu, and other officials.

During the summit, Nigeria held strategic meetings with Japanese corporations, including Toshiba, Hitachi, Japan’s Transmission & Distribution Corporation, and Energy Exchange firms, with discussions centered on improving transmission capacity, reducing system losses, and boosting efficiency.

According to Adelabu, the proposed JICA loan builds on the ₦19 billion counterpart funding recently approved by the Federal Executive Council (FEC). The financing will support:

102.95km of new 330kV double circuit (DC) transmission lines

104.59km of new 132kV DC lines

Four 330/132/33kV substations

Two 132/33kV substations

Bay extensions at existing 330kV and 132kV substations

Beyond grid expansion, Adelabu announced plans for a separate $190 million renewable energy loan facility supported by JICA to accelerate deployment of solar mini-grids and standalone systems in underserved communities. This complements the recently launched $750 million World Bank DARES programme, which targets clean electricity for 17 million Nigerians under the Mission 300 Compact.

In the short term, three new substations—funded through a $32 million JICA grant—are due for commissioning in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State). The projects are expected to directly improve power supply to households, industries, and critical infrastructure such as Lagos Port.

As part of the collaboration, JICA also equipped the National Power Training Institute of Nigeria (NAPTIN) in Abuja with modern training tools to upskill distribution engineers, reduce network losses, and deepen local technical expertise.

Speaking on Nigeria’s energy realities, Adelabu noted that only 60% of Nigerians currently have access to electricity, much of which is unreliable. He stressed that the government is prioritizing both grid expansion for urban areas and off-grid renewable solutions for rural communities.

“Despite challenges such as limited access to capital and affordability for rural households, we remain committed to supportive policies, strategic private-sector partnerships, and promoting local manufacturing of renewable components,” the minister said.

President Tinubu, addressing the summit, emphasized that Nigeria’s participation at TICAD 9 was “about forging strategic, outcome-driven partnerships” rather than ceremonial agreements.

“We are deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results,” Tinubu declared.

With Japan’s support through JICA, Nigeria hopes to accelerate its energy transition, expand reliable electricity access, and strengthen the backbone of its power sector ahead of rising demand.

Share this:

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *