The Federal Government has obtained a $238 million loan facility from the Japan International Cooperation Agency (JICA) to significantly enhance Nigeria’s national power grid infrastructure.
This financial agreement follows high-level diplomatic engagements led by President Bola Ahmed Tinubu and Minister of Power Chief Adebayo Adelabu during the Ninth Tokyo International Conference on African Development (TICAD9) held in Yokohama, Japan.
President Tinubu emphasised that Nigeria’s participation focused on achieving concrete outcomes rather than ceremonial diplomacy, marking a strategic shift from planning to implementation in international partnerships.
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The comprehensive grid expansion project will be financed through the JICA loan, along with a Federal Executive Council counterpart funding of approximately N19 billion. The initiative includes the construction of 102.95 kilometres of new 330kV double circuit transmission lines and 104.59 kilometres of 132kV double circuit lines.
Additionally, the project will involve establishing four new 330/132/33kV substations, two 132/33kV substations, and multiple line bay extensions aimed at improving overall system efficiency and reducing technical losses.
Minister Adelabu highlighted the importance of collaborations with leading Japanese power companies, including Toshiba, Hitachi, and Japan’s Transmission & Distribution Corporation, in unlocking Nigeria’s energy potential. He described the JICA loan as fundamental to transforming the nation’s transmission infrastructure and operational capabilities. The minister also acknowledged Japan’s consistent support through various infrastructure projects, technical studies, training programs, and financing arrangements that have contributed significantly to strengthening Nigeria’s power sector.
This grid expansion project forms part of the government’s broader strategy to address Nigeria’s energy access gap, where currently only 55-60% of the population has reliable electricity.
The initiative complements other recent programs such as the $750 million World Bank Distributed Access through Renewable Energy Scale-up project, which aims to provide clean electricity to over 17 million Nigerians.
Simultaneously, three JICA-funded substations in Apo, Keffi, and Apapa are nearing commissioning, promising improved supply reliability to key economic zones, including the Lagos Port and surrounding industrial areas. The partnership also includes capacity building components, with state-of-the-art training equipment recently commissioned at the National Power Training Institute of Nigeria to enhance the skills of distribution engineers and promote long-term sector sustainability.
cc: Punch NG
