The Federal Government is in advanced negotiations with China’s Export-Import Bank for a $2 billion loan to finance the construction of a new electricity super grid aimed at addressing Nigeria’s chronic power supply challenges.
According to Bloomberg, the proposed project is designed to boost power transmission across the country’s eastern and western regions, where most of Nigeria’s industrial consumers are located.
Minister of Power, Adebayo Adelabu, revealed the plan during an economic summit in Abuja on Monday, explaining that the initiative forms part of the government’s broader strategy to decentralise power generation and strengthen the national grid.
“It’s part of plans to decentralise power generation in Nigeria and get the heavy commercial users that left the power grid because of its unreliability to return,” Adelabu said.
Nigeria currently has an electricity generation capacity of about 13 gigawatts, but only a third of that reaches consumers due to transmission inefficiencies and frequent system collapses.
The new super grid project is expected to improve reliability, encourage industrial users to reconnect to the national grid, and support economic growth through more stable energy supply.