Tinubu govt seeks $238m loan from Japan

The Federal Government is currently in discussions with the Japan International Cooperation Agency (JICA) to secure a $238 million loan aimed at transforming Nigeria’s electricity transmission network and boosting power supply across the nation.

These discussions took center stage during the Ninth Tokyo International Conference on African Development (TICAD 9), held in Yokohama, Japan, where President Bola Tinubu led Nigerian delegation, including Minister of Power Adebayo Adelabu and other senior officials.

As part of the event, the Nigerian delegation engaged with top Japanese energy giants like Toshiba, Hitachi, Japan’s Transmission & Distribution Corporation, and Energy Exchange Corporation.

The discussions focused on major investments in transmission infrastructure, improving grid efficiency, and reducing system losses.

This proposed facility is anchored on Nigeria’s recent Federal Executive Council (FEC) approval of ₦19 billion in counterpart funding, which is expected to unlock JICA’s support.

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The loan will fund the construction of nearly 103 kilometers of 330kV double-circuit transmission lines and 105 kilometers of 132kV double-circuit lines, along with multiple substations and line bay extensions across the country.

These upgrades aim to enhance the reliability and efficiency of Nigeria’s power grid while addressing critical system losses.

Minister Adebayo Adelabu also shared that Nigeria is pursuing a separate $190 million renewable energy loan with JICA to scale solar mini-grids and other off-grid solutions in underserved communities.

This initiative complements the $750 million World Bank-backed Distributed Access through Renewable Energy Scale-up (DARES) program under the Mission 300 Compact, which seeks to provide clean and reliable electricity to over 17 million Nigerians.

Additionally, three JICA-funded substations—located in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State)—are nearing commissioning. Built with a $32 million JICA grant, these facilities are set to improve power delivery to homes, businesses, and critical infrastructure, such as Lagos Port.

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JICA’s contributions extend beyond infrastructure. The organization has equipped the National Power Training Institute of Nigeria (NAPTIN) in Abuja with cutting-edge training tools to enhance the technical expertise of local engineers.

Minister Adelabu highlighted the importance of this facility in fostering long-term sustainability through capacity development.

While speaking at a panel session titled “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa”, Adelabu pointed out that only about 60 percent of Nigeria’s 200 million citizens currently have access to electricity, much of which is unreliable.

He emphasized the government’s dual approach of expanding the national grid in urban areas while accelerating solar and off-grid solutions in rural communities.

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Despite challenges such as limited access to affordable capital, high costs for rural electrification, and the under-utilization of productive-use equipment, Adelabu reaffirmed the government’s commitment to overcoming these obstacles through supportive policies, private-sector partnerships, and local manufacturing of renewable energy components.

He praised JICA and the Japanese government as “reliable partners in advancing Nigeria’s energy transition” and ensuring access to sustainable, affordable electricity.

President Tinubu echoed this sentiment, underscoring Nigeria’s focus on achieving concrete results from international partnerships.

“Nigeria is deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results”, he stated, emphasizing that the country’s participation at TICAD 9 was about creating real impact, not symbolic gestures.

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