Nigeria is in advanced talks with China’s Export-Import Bank for a $2 billion loan to construct a new “super grid” aimed at tackling the nation’s chronic electricity shortages and supporting industrial growth.
Minister of Power, Adebayo Adelabu, announced the plan during an economic summit in Abuja, explaining that the project would serve both the eastern and western regions where most industrial consumers are based. He noted that the initiative is part of efforts to decentralize power generation and encourage major industries that abandoned the unreliable national grid to return.
Adelabu’s team confirmed that discussions with China Eximbank are progressing, and cabinet approval for the financing has already been granted.
Nigeria’s current electricity challenge has long hindered economic expansion. Although the country has a generation capacity of about 13 gigawatts, only a third is effectively distributed to its over 200 million citizens — and frequent grid collapses worsen the problem. By contrast, South Africa, with a much smaller population, boasts about 70 gigawatts of capacity.
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The new super grid, according to the minister, will channel more generated power to industrial zones, improving supply reliability and supporting job creation.
Adelabu also revealed that President Bola Tinubu’s recent energy reforms including tariff adjustments have raised power sector revenues by 70% in 2024, with a further 41% increase projected this year, reaching ₦2.4 trillion ($1.6 billion).
