Nigeria to Enhance Power Supply With $238m Japan Loan for Grid Expansion
- The Federal Government is discussing a $238 million loan from JICA to develop the country's electrical grid, focusing on the transmission sector
- The loan will fund the construction of new power lines, substations, and infrastructure to improve supply reliability
- Additionally, Nigeria is advancing renewable energy projects, including a $190 million loan program and the $750 million World Bank DARES initiative
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
A $238 million loan from the Japan International Cooperation Agency (JICA) is currently being discussed by the Federal Government for the development of Nigeria's national electrical grid network, particularly the transmission portion of the power value chain.
Source: Getty Images
This was one of the conclusions drawn from discussions at the recently concluded Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan, attended by the Minister of Power, Adebayo Adelabu, and other officials. President Bola Tinubu led the Nigerian delegation.
During high-level meetings with Japanese stakeholders such as Toshiba, Hitachi, Japan's Transmission & Distribution Corporation, and energy exchange companies, the national delegation discussed transmission infrastructure, operational effectiveness, and methods for reducing system losses.
The proposed loan was based on the Federal Executive Council's (FEC) recent approval of ₦19 billion in counterpart funding, which acted as a catalyst for the $238 million loan from JICA.
As part of the loan, 102.95 km of new 330 kV double circuit (DC) line, 104.59 km of new 132 kV DC line, four 330/132/33 kV substations, two 132/33 kV substations, two 330 kV line bay extensions, two 132 kV line bay extensions, and one 132 kV substation will be added to the national grid.
Channels reported that the minister also mentioned that Nigeria is moving forward with a $190 million renewable energy loan program backed by JICA, aimed at expanding distributed renewable energy solutions in underserved areas.
The goal of the recently announced $750 million World Bank Distributed Access through Renewable Energy Scale-up (DARES) program under the Mission 300 Compact is to bring clean and dependable power to over 17 million Nigerians.
Concurrently, three substations in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State) are scheduled to be commissioned, with $32 million in funding from JICA.
Households, companies, and industrial clusters—including critical infrastructure such as the Lagos Port and neighbouring industrial areas—will benefit directly from the projects' increased supply reliability.
In addition, through the partnership with JICA, Adelabu stated that the National Power Training Institute of Nigeria (NAPTIN) has commissioned state-of-the-art training equipment in Abuja to enhance the capabilities of distribution engineers and reduce network losses.
Through capacity-building, which remains a key component of Nigeria's power sector strategy, the facility aims to strengthen indigenous knowledge and promote long-term sustainability in sector operations.
Source: Getty Images
Adelabu highlighted Nigeria's current energy challenges while speaking at a panel session titled "HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa."
He pointed out that only about 60% of the nation's 200 million residents have access to electricity, and most of it remains unreliable. He clarified that the Federal Government is addressing this gap by expanding urban grid access and accelerating off-grid solutions for rural and peri-urban regions, including solar mini-grids and independent systems.
Electricity company set to build solar energy project
Legit.ng reported that J-Marine Logistics Limited and Kaduna Electric Distribution Company (KEDCO) have inked a memorandum of understanding (MoU) for the construction of a 100-megawatt (MW) solar energy project that incorporates a battery energy storage system (BESS).
The plan is a significant move toward tackling power supply concerns and laying the groundwork for equitable economic growth and development, according to KEDCO chairman Aminu Suleiman, who spoke at the signing of the Memorandum of Understanding on Friday in Kaduna.
According to him, the partnership seeks to increase industrial productivity, provide cleaner energy, and strengthen the dependability of power supplies.
Source: Legit.ng
