The Federal Government has entered advanced negotiations with China’s Export-Import Bank to secure a $2 billion loan for a new electricity super grid.
The project is designed to overhaul Nigeria’s failing transmission system and improve power supply across the country.
Minister of Power, Adebayo Adelabu, disclosed the plan at an economic summit in Abuja on Monday, October 6, 2025.
He said the initiative would decentralize power generation and attract industrial consumers back to the national grid.
According to him, the super grid project targets major industrial zones in Nigeria’s eastern and western regions, where most manufacturers operate.
“It’s part of plans to decentralize power generation in Nigeria and get the heavy commercial users that left the power grid because of its unreliability to return,” Adelabu said.
Sources from Bloomberg confirmed that negotiations with China’s Exim Bank are progressing smoothly.
The minister also noted that the financing proposal for the grid has already received approval from the Federal Executive Council.
Nigeria currently generates about 13 gigawatts of electricity, but less than a third reaches consumers due to poor infrastructure and repeated system failures.
By comparison, South Africa despite having a population roughly one-quarter of Nigeria’s has an installed generation capacity of around 70 gigawatts.
The new super grid is expected to significantly expand Nigeria’s transmission capacity and reduce dependence on self-generated power.
At present, private generators account for nearly half of national electricity use.
Adelabu said the grid will enhance power flow to key manufacturing hubs and strengthen investor confidence in the energy sector.
The project, he explained, aligns with President Bola Tinubu’s broader reform agenda to revive the economy.
Since assuming office in 2023, Tinubu has introduced several economic measures, including the removal of fuel subsidies, a tax overhaul, and improved security in oil-producing areas to attract foreign investment.
His administration also approved tariff adjustments for urban electricity consumers to boost sector revenue.
Adelabu added that these reforms increased revenue for distribution companies by 70 percent in 2024, with projections reaching ₦2.4 trillion ($1.6 billion) by the end of 2025.
When completed, the super grid is expected to provide stable electricity for industries, support economic growth, and reduce Nigeria’s reliance on expensive private generation.
