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Home > Power Minister
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Power Minister
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FG Seeks Fresh $2b Dollars China Loan For Power Grid

by Nelson Ugwuagbo October 7, 2025
written by Nelson Ugwuagbo

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.

October 7, 2025 0 comments
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Headlines

Why Grid Collapse will continue – Power Minister

by Folarin Kehinde January 14, 2025
written by Folarin Kehinde

The Minister of Power, Mr. Adebayo Adelabu, has disclosed that the National grid will continue to collapse until insecurity in the north is addressed to make way for the repairs on Ugwachi-Bauchi-Makurdi line.

Speaking before the Senate Committee on Power for the 2025 budget defence of his ministry on Monday, Adelabu disclosed that the grid is old and requires a total overhaul to make it efficient.

Adelabu corrected the notion that the grid collapsed 12 times in 2024, stating that it experienced only 8 collapses, out of which 5 were full and 3 partial collapses. He attributed three of the full collapses to generation problems, while two were due to vandalism issues.

He said, “We had plans to stabilise the grid and other transmission infrastructure. I am happy to also inform you that out of the 8 collapses of the national grid that we experienced during 2024, five were full collapses, while 3 were actually partial collapses. Out of the 5 full collapses that we experienced, 3 out of them were actually due to generation problems where we had issues with sudden reductions in generation compared to the power being taken up by the users which affected the frequency imbalance on the grid and the reason for this was not far fetched.

“Out of the 5, three were from generation, while two were from vandalisation issues and I don’t want to emphasise this vandalisation issue because we are all aware of what happened.

“As I am talking talk to you now, we have not rectified the major line which is the Shiroro-Mando-Kaduna line which is why our grid is so, so fragile. Because it is only one line that is still supplying power to the north and it is being burdened unnecessarily and we know the implication of this on infrastructure technicalities.

“So it is still the insecurity that has not enabled us to fix the Shiroro-Kaduna-Mando line which has been handed over to the security agencies. Till today, they have not even fixed it Ugwachi-Bauchi-Makurdi line.”

Adelabu reported that the ministry achieved 50-55% of its 2024 budget goals and aims to reach 80% by June 2025.

He added, “If you look at the 2025 budget, the total budget for the sector, which is the ministry and its agencies is about N2 trillion. Out of the N2trillion, overhead and personnel which is salaries is about N10.5bn. Out of this N2.086 trillion, you see that the the whole recurrent is about 80 percent of this. So I will go to the Federal ministry and you will see that out of N1.189 trillion for the Federal ministry as the capital budget, N810 billion is for loan repayment.

“That is N585billion and N225billion for multilateral and bilateral tied loans to the power sector. That is PPSR and the multilateral and bilateral tied loan, distribution sector recovery. Plus that is the N150billion that is meant to be transferred as our counterpart funding for the Siemens project. So N150billion plus N810, that is N960billion taken out of N1.189billion, leaving N229billion for the power ministry. So out of this N229billion, N29billion is for ongoing projects in the power ministry. I will try to explain the N200billion additional which are for new projects based on proposed activities for the power sector.

“The Federal ministry’s intervention for completion of TCN priority projects. This is a Federal government intervention for TCN projects. If you remember the last time we were here, I said we have over a hundred TCN uncompleted projects some at 35, 36 and 30 percent completion. No appropriation for TCN is a major problem that we want to register at this sessions.

“With all the noise, all the hues and cries about the instability of the grid, grid age, grid fragility, grid unreliability, there is not one naira appropriation for TCN. I think we need to walk the talk. We expect TCN to fund its programmes through its internally generated revenue which have been dwindling over the years based on the fact that we do not want to increase the tariff. If you pay TCN, it goes into the tariff setting so I believe this committe should help us look into this by appropriating funds for TCN.

“Be that as it may, we have decided to from the ministry to do a little of our own part by completing between 8 and 12 of the projects, which is why we appropriated this N25billion. It was more than this but it was cut down. We wanted about N100billion to do something about this year’s projects. That’s number 1.

“Number 2 is that, this is also an attempt to strengthen grid stability. It is the distribution segment. Today, as representatives of the people, when you go to your constituency, the first thing they will tell you is our transformer is down, our transformers are not working, our poles are bad, our poles are falling and all that.

“Irrespective of the activities of the discos, let us also as responsible representatives of the people, let us buy as many transformers as possible and distribute to this Pele. Which is why we have budgeted N36billion for distribution segment for transformers and replacements across the six geopolitical zones.

“The issue of rural electrification. Like i said that the 64 percent electrification penetration that we have, 90 percent is in the urban and semi-urban centres. Our rural dwellers are still suffering from energy poverty and we believe that it will be expensive to extend the grid for their benefit so let us focus on alternative energy which is renewable energy so distribution of solar energy steps, rural street lighting across the six geopolitical zones under the Renewed Hope Light up Rural Areas programme, we have about N30billion budgeted.

“Emergency intervention for distribution infrastructure. Just like we are covering for TCN, a lot of times that TCN infrastructure are vandalised, the restoration work is emergency, if you don’t do it between 24 to 48 hours, it becomes a national issue. Which is why we are also setting aside N10billion to also intervene in distribution activities of our power sector value chain. Then we have some mini-hydro, mini-grid and solar maintenance where we have N8billion.

“Then again, in terms of advocacy, we believe that our people need to be educated, they need to be reorientated to know that power assets are national assets and we should all jointly own it. N200million.”

January 14, 2025 0 comments
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Headlines

Power minister laments as DISCOs reject power

by Folarin Kehinde September 1, 2024
written by Folarin Kehinde

…says FG set to release $800m for construction of substations

Minister of Power, Adebayo Adelabu has lamented the rejection of power by the Distribution Companies (DISCOs) in the country.

This is as the federal government concludes plan to release $800m for the construction of substations and distribution lines under the Presidential Power Initiative (PPI).

The money will ensure the construction of substations for Lot 2, substations and distribution lines for Lot 3 at a cost of $400m each.

The Lot 2 covers Benin, Port Harcourt, Enugu Distribution companies (DISCOs) franchise areas while Lot 3 covers Abuja, Kaduna, Jos and Kano DISCOs franchise areas.

A statement issued by the ministry on Sunday said Adelabu during a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China.

The minister was in China to attend the China-Africa Cooperation Summit.

The Minister saidon Friday, August 30, generation peaked at 5,170 megawatts, unfortunately, it had to be ramped down by 1,400 megawatts due to inability of the DISCOs to pick the supply.

“This is really regrettable considering that government is on course to increase generation to 6,000 megawatts by the end of the year.”

Also speaking during an interactive session with TBEA management, Adelabu also assured of the federal government’s commitment towards working with world class organisations like TBEA to achieve the Renewed Hope vision of President Bola Tinubu for the power sector in Nigeria especially in areas of transmission and distribution of the entire power sector value chain as well as Nigeria’s renewable energy segment.

Speaking on the problems in the power sector which had hindered industrial growth, the minister said this was due partly to the fragility of the Transmission and distribution infrastructure which have become old and dilapidated.

“This has led to historical epileptic supply of Power to households, industry and businesses”, he said.

September 1, 2024 0 comments
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Headlines

Power Minister, Adelabu to Present National Electricity Policy to FEC

by Folarin Kehinde August 29, 2024
written by Folarin Kehinde

…….says policy implementation will enhance upgrade of nation grid

The minister of power, Adebayo Adelabu on Wednesday said he will present the “Zero Draft Integrated National Electricity Policy to the Federal Executive Council (FEC) for approval in the next six weeks adding that policy implementation will enhance national grid upgrade.

He spoke during the official presentation of the zero draft of the National Integrated Electricity Policy and Strategic Implementation Plan (NIEP-SIP) in Abuja.

He said: “This policy document as amended with comment and responses to be received from all stakeholders will be duly presented to the Federal Executive Council within the next six weeks for approval.”

He assured the stakeholders that the ministry is committed to transparency, accountability, and inclusivity at every stage of the process.

Adelabu said the success of the policy will require the continued collaboration of all stakeholders.

He urged everyone to remain engaged and supportive as the team works together to realize the objectives of policy.

The minister said the successful implementation of the policy will be better accompanied by continuous enhancement and upgrade of national grid infrastructure.

He added that the successful implementation will also result in the eventual complete migration to a full-cost -reflective tariff model.

His words: “I want to mention the fact that the successful implementation of this policy document will be better complemented by continuous enhancement and upgrade of our grid and off power infrastructure, and the eventual full migration of the market to a full cost-reflective tariff model, we have the consequent positive impact on the power sector.

“And this will mark a complete transformation of our overall livelihoods as Nigerians by boosting our standard of living, improving our industrialization process, mechanized agriculture, improve maternal healthcare.”

He described the NIEP-SIP as a comprehensive document outlining policy interventions across the entire electricity sector, from generation and transmission to distribution and off-grid segments.

He said the plan aims to transform Nigeria’s electricity sector into one that is resilient, efficient, and capable of supporting national development.

He highlighted that the NIEP-SIP emphasizes improving sector liquidity, fostering an investment-friendly environment, integrating renewable energy sources, enhancing grid reliability, ensuring equitable electricity access for all Nigerians—especially those in underserved communities—boosting local content and capacity throughout the value chain, and promoting gender mainstreaming in the sector.

Adelabu added: “As we move forward with the implementation of this policy, I want to assure you that we are committed to transparency, accountability, and inclusivity at every stage.

“The success of this policy will require the continued collaboration of all stakeholders, and I urge everyone to remain engaged and supportive as we work together to realize its objectives.

“In conclusion, let me express my sincere gratitude to the various stakeholders, industry experts, and development partners who have contributed to the development of this policy.

“Your commitment and hard work have laid a strong foundation for a brighter energy future for Nigeria. I am confident that, with your continued support, we will achieve our goal of transforming the Nigerian power sector into one that is not only self-sustaining but also a catalyst for economic growth and social development.”

August 29, 2024 0 comments
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