FG inTalks With Japan for $238m Loan to Boost National Grid

The Federal Government is negotiating a $238 million loan facility with the Japan International Cooperation Agency (JICA) to boost Nigeria’s national electricity grid, with a strong focus on strengthening transmission infrastructure.

This was disclosed at the Ninth Tokyo International Conference on African Development (TICAD 9) held in Yokohama, Japan. The Nigerian delegation, led by President Bola Tinubu, also included the Minister of Power, Adebayo Adelabu, who engaged with key Japanese companies such as Toshiba, Hitachi, Japan’s Transmission & Distribution Corporation, and Energy Exchange corporations. Discussions centred on operational efficiency, transmission expansion, and strategies to reduce system losses.

According to Adelabu, the proposed facility builds on recent Federal Executive Council (FEC) approval of ₦19 billion as counterpart funding to unlock the $238 million support from JICA. The project will cover 102.95km of new 330kV double circuit line, 104.59km of 132kV double circuit line, four 330/132/33kV substations, two 132/33kV substations, two 330kV line bays extension, two 132kV line bays extension, and one 132kV substation.

In addition, the minister revealed that Nigeria is also advancing a $190 million renewable energy loan programme backed by JICA, aimed at scaling distributed renewable energy projects across underserved areas. This complements the recently launched $750 million World Bank-supported Distributed Access through Renewable Energy Scale-up (DARES) programme under the Mission 300 Compact, which seeks to provide clean electricity to more than 17 million Nigerians.

Meanwhile, three substations built under a $32 million JICA grant are now ready for commissioning in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State). Once operational, these projects will strengthen electricity supply to households, industrial clusters, and critical infrastructure, including the Lagos Port.

Adelabu further disclosed that through JICA’s collaboration, the National Power Training Institute of Nigeria (NAPTIN) has installed state-of-the-art training equipment in Abuja to upgrade the skills of distribution engineers and address network losses. The initiative, he noted, was designed to “deepen local expertise and promote long-term sustainability in sector operations through capacity development, which remains a cornerstone of Nigeria’s power sector strategy.”

Speaking on a TICAD panel themed “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa,” Adelabu highlighted Nigeria’s energy gap, stressing that “only about 60 percent of the country’s population of over 200 million has access to electricity, much of which remains unreliable.” He explained that the government is expanding grid coverage in urban areas while simultaneously promoting solar mini-grids and standalone systems for rural communities.

Despite challenges around access to affordable financing, rural cost barriers, and under-utilisation of productive-use equipment, the minister reiterated government’s determination to press forward. He pledged that obstacles would be overcome “through supportive policies, strategic private-sector partnerships, and local manufacturing of renewable energy components.”

Adelabu also commended Japan for its sustained role in Nigeria’s power development. “JICA remains a reliable partner in advancing the country’s energy transition and expanding access to reliable, affordable, and sustainable electricity,” he said.

President Tinubu, in his remarks at the summit, underscored the purpose of Nigeria’s presence at TICAD 9. According to him, “Nigeria’s participation at TICAD 9 was not about trade exhibitions, but about forging strategic, outcome-driven partnerships that would deliver tangible results for the Nigerian people.”

He added that the administration is committed to turning intentions into actions. “Nigeria is deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results,” the President stressed.