Nigeria Secures £238 Million Loan From Japan To Bolster National Power Grid.
The Federal Government of Nigeria has clinched a significant $238 million loan from the Japan International Cooperation Agency (JICA) to enhance the country’s national power grid. The agreement was finalised during high-level discussions led by President Bola Ahmed Tinubu and Minister of Power, Chief Adebayo Adelabu, at the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan.
The landmark deal, supported by counterpart funding of ₦19.08 billion approved by the Federal Executive Council, aims to transform Nigeria’s electricity infrastructure. The funds will support critical projects, including the construction of 102.95km of new 330kV double circuit lines, 104.59km of 132kV double circuit lines, four 330/132/33kV substations, two 132/33kV substations, and several line bay extensions. These upgrades are designed to improve efficiency and reduce system losses across the grid, addressing long-standing challenges in Nigeria’s power sector.
President Tinubu emphasised that Nigeria’s participation at TICAD9 was focused on delivering tangible outcomes for its citizens. “This is about forging strategic partnerships that translate into measurable results. We are moving from promises to implementation, ensuring Nigerians see the benefits of our efforts,” he stated.
Minister Adelabu highlighted the importance of collaborations with Japanese energy giants such as Toshiba, Hitachi, and Japan’s Transmission & Distribution Corporation. “This loan forms the backbone of our transformation strategy, focusing on transmission infrastructure and operational efficiency,” he said. He also praised JICA’s consistent support for Nigeria’s energy transition, citing their contributions to infrastructure, technical studies, and training.
The initiative complements other efforts to bridge Nigeria’s energy gap, where only 55–60% of the population currently has access to electricity. The government is prioritising grid expansion in urban areas while accelerating off-grid solutions, such as solar mini-grids, for rural communities. Additionally, three JICA-funded substations in Apo, Keffi, and Apapa, supported by a $32 million grant, are nearing completion, set to enhance power supply to households, businesses, and industrial hubs, including Lagos Port.
Further strengthening the sector, JICA’s partnership has enabled the National Power Training Institute of Nigeria (NAPTIN) to commission state-of-the-art training equipment in Abuja. This facility will bolster the skills of distribution engineers, supporting long-term sustainability in the power sector.
This $238 million loan marks a pivotal step towards achieving reliable, affordable, and sustainable electricity for millions of Nigerians, aligning with the government’s broader vision for energy security and economic growth.
