Nigeria Secures $238M Loan from Japan for Power Grid Expansion

The Nigerian government has secured a $238 million loan from the Japan International Cooperation Agency (JICA) to significantly expand its national electricity grid. This funding will support the construction of key transmission infrastructure aimed at improving power supply and reducing system losses.

The new projects, which are part of a broader strategy to transform Nigeria's power sector, will include:

• 102.95km of new 330kV double-circuit transmission lines.

• 104.59km of new 132kV double-circuit transmission lines.

• Four new 330/132/33kV substations.

• Two new 132/33kV substations.

• Extensions to existing 330kV and 132kV line bays.

• One new 132kV substation.

The loan was part of the outcomes of the recently concluded Ninth Tokyo International Conference on African Development (TICAD 9) in Japan. The Nigerian delegation, led by President Bola Tinubu and Minister of Power Adebayo Adelabu, engaged with Japanese stakeholders to secure the financing. The Federal Executive Council (FEC) had already approved a counterpart fund of ₦19 billion to catalyze the loan.

This project is a critical component of the government's efforts to address the country's persistent power challenges. Minister Adelabu stated that the financing from JICA will serve as a backbone for the transformation of Nigeria's transmission infrastructure. . The government is also advancing a separate $190 million renewable energy loan facility with JICA to scale up off-grid solutions, particularly in underserved communities.