Nigeria is negotiating a $2 billion loan with China’s Export-Import Bank to fund the construction of a new “super grid” designed to resolve the nation’s chronic electricity shortages and stimulate industrial expansion.
Power Minister Adebayo Adelabu disclosed this at an economic summit in Abuja on Monday, explaining that the proposed transmission network will connect the country’s eastern and western regions — home to most of Nigeria’s industrial users.
He said the project forms part of government efforts to decentralize power generation and encourage major industrial consumers who abandoned the unreliable national grid to reconnect.
“It’s part of our strategy to decentralize power generation and bring back heavy commercial users who left the grid because of its instability,” Adelabu stated.
Nigeria’s power sector remains one of the biggest obstacles to economic growth.
Despite an installed capacity of about 13 gigawatts, the national grid delivers only a fraction of that to more than 200 million citizens, frequently suffering system collapses. By contrast, South Africa, with a quarter of Nigeria’s population, generates around 70 gigawatts.
Adelabu noted that the widespread shift to self-generation now accounts for nearly half of Nigeria’s total electricity use. The planned super grid, he said, will boost transmission efficiency and deliver more power to industrial zones. The Federal Executive Council has already approved the project’s financing plan.
The initiative aligns with President Bola Tinubu’s economic reforms, which include fuel subsidy removal, tax law overhaul, improved oil sector security, and efforts to enhance the financial stability of the power industry.
Adelabu also revealed that recent electricity tariff adjustments for urban consumers have strengthened revenue in the sector, rising by 70% in 2024, with projections to grow another 41% to ₦2.4 trillion ($1.6 billion) by year’s end.
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