Nigeria’s Minister of Power, Adebayo Adelabu, has disclosed that the Federal Government is in discussion with the Export-Import Bank of China to secure a $2 billion loan to fund the development of a new national "super grid," which will stabilize energy supplies and encourage industrial growth across the country. Adelabu made this known at the …
Nigeria Seeks $2bn China Loan to Build ‘National Super Grid’ – Power Minister
Nigeria’s Minister of Power, Adebayo Adelabu, has disclosed that the Federal Government is in discussion with the Export-Import Bank of China to secure a $2 billion loan to fund the development of a new national “super grid,” which will stabilize energy supplies and encourage industrial growth across the country.
Adelabu made this known at the Nigerian Economic Summit Group (NESG)’s ongoing economic summit in Abuja.
The power minister stated that the project had received approval from the government and will serve as a new high-capacity backbone connecting the industrial clusters across the country.
He explained that the project is designed to improve power supply, attract large-scale manufacturers who had previously disengaged from the inefficient national grid to reconnect, and lessen the country’s reliance on costly self-generation.
“We are in advanced discussions with China’s Exim Bank for a $2 billion financing package to construct a national super grid that will stabilise supply across the country. This is part of President Bola Tinubu’s reform agenda to decentralise generation and modernise transmission infrastructure,” Adelabu said.
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The Minister also mentioned that earlier this year, the Federal Government signed an agreement with China Machinery Engineering Corporation (CMEC) to upgrade existing transmission infrastructure as part of the Presidential Power Initiative (PPI), describing it as a step toward the larger super-grid plan.
Debt owed GenCos
Adelabu also disclosed that President Bola Tinubu has approved a N4 trillion bond to clear verified debts owed to power generation companies and gas suppliers.
According to him, the bond approval is part of a larger financial stabilisation strategy aimed at addressing legacy obligations that have hampered investment and liquidity across the electricity value chain.
“To stabilise the market, Mr President has approved a N4tn bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation and a viable industry,” he stated.
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He said that the federal government is taking a comprehensive, multi-pronged strategy to repositioning the sector for “sustainability, efficiency, and growth,” which includes legislation, policy reform, infrastructure development, energy transition, and local content expansion.
The minister also claimed that the government’s tariff policy adjustments have begun to yield beneficial outcomes, saying that by enabling cost-reflective pricing for chosen consumers, supply reliability has increased while industries’ energy costs have decreased.
He stated that the power sector revenue had expanded significantly in the previous year, saying, industry revenue has increased by 70 per cent to N1.7 trillion in 2024 compared to the previous year, and revenue is expected to exceed N2 trillion in 2025.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
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