Nigeria is in discussions with China’s Export-Import Bank for a $2 billion loan to construct a new electricity super grid aimed at addressing the country’s chronic power supply challenges, Minister for Power Adebayo Adelabu has disclosed.
Speaking at a summit in Abuja on Monday, October 6, Adelabu said the project will strengthen transmission across Nigeria’s eastern and western regions, where most industrial consumers are located.
He explained that the initiative is part of government efforts to decentralise power generation and encourage heavy energy users who left the unreliable national grid to reconnect.
“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’s generation capacity stands at about 13 gigawatts, but only a third of that reaches consumers through the central grid, which often suffers system collapses.
As a result, many companies rely on self-generated power, accounting for nearly half of total consumption.
The new super grid, Adelabu said, will improve power flow to industrial zones and support manufacturing growth.
Since President Bola Tinubu took office in 2023, Nigeria has implemented several economic reforms, including fuel subsidy removal, a tax overhaul, and enhanced security in oil-producing regions to attract investment.
The administration also approved tariff adjustments for select urban consumers to strengthen the financial viability of the power sector.
According to Adelabu, the policy led to a 70 percent increase in revenue for electricity distribution companies in 2024, with projections to reach ₦2.4 trillion ($1.6 billion) this year.
Source: https:// energynewsafrica.com
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