The Federal Government is in advanced negotiations with China’s Export-Import Bank for a $2 billion loan to finance a new electricity super grid aimed at fixing Nigeria’s persistent power challenges, Zoyols Blog has learned.
The proposed project is designed to strengthen transmission infrastructure across the eastern and western regions of the country — areas that host most of Nigeria’s industrial consumers. Minister of Power, Adebayo Adelabu, disclosed the plan during an economic summit in Abuja, emphasizing that the project is central to government efforts to decentralize power generation and restore confidence among major energy users who abandoned the national grid due to years of instability.
“This initiative is part of our strategy to decentralize power generation and bring back heavy commercial users who left the grid because of its unreliability,” Adelabu explained.
According to Zoyols Blog findings, talks between Nigeria and China’s Exim Bank are already making progress, with the Federal Executive Council having granted prior approval for the financing framework.
Nigeria’s total power generation capacity stands at roughly 13 gigawatts, but only about one-third of that is delivered to consumers through a national grid notorious for frequent system collapses. In contrast, South Africa — with just a quarter of Nigeria’s population — boasts an installed capacity of nearly 70 gigawatts.
The country’s unreliable power supply has forced many industries to rely on self-generated electricity, which now accounts for almost half of national energy consumption. The new super grid is expected to change that narrative by ensuring a more stable power flow to industrial zones, spurring manufacturing growth, and enhancing productivity.
Since taking office in 2023, President Bola Tinubu’s administration has rolled out a series of economic reforms to attract investment — from scrapping fuel subsidies to reforming tax policies and improving security in oil-producing areas. The government has also approved tariff adjustments for select urban consumers to enhance the financial sustainability of the power sector.
Adelabu revealed that this policy shift resulted in a 70 percent increase in revenue for electricity distribution companies in 2024, with projections showing further growth that could push total revenue to ₦2.4 trillion ($1.6 billion) by the end of the year.
If finalized, the $2 billion Chinese-backed grid project could mark a major step toward stabilizing Nigeria’s energy infrastructure — a move seen as critical to driving the country’s industrial and economic transformation.
