Tuesday, October 7, 2025 - Nigeria is currently in advanced talks with the Export-Import Bank of China for a $2 billion loan to fund the construction of a new “super grid” designed to tackle the country’s persistent power shortages.
According to a Bloomberg report, the Minister of Power,
Adebayo Adelabu, disclosed the plan during the Nigerian Economic Summit held in
Abuja on Monday, October 6. He explained that the new transmission project
forms a central part of the government’s efforts to decentralize power
generation and improve electricity supply reliability across industrial and
commercial hubs.
Adelabu said the proposed super grid will connect Nigeria’s
eastern and western regions, linking areas with high concentrations of
industrial users that had previously disconnected from the national grid due to
its frequent failures.
“It’s part of plans to decentralize power generation in
Nigeria and get the heavy commercial users that left the power grid because of
its unreliability to return,” Adelabu stated.
He added that the Federal Executive Council (FEC) has
already approved the project’s financing framework, paving the way for
negotiations with China’s Exim Bank to proceed.
The minister noted that the new grid is expected to
significantly improve transmission efficiency, reduce power losses, and
strengthen electricity delivery to manufacturing and industrial zones.
Nigeria’s national grid has suffered repeated collapses over the years, often
caused by low generation capacity, poor maintenance, and transmission
bottlenecks, leaving businesses and households across the country in prolonged
darkness.
Adelabu also highlighted the financial improvements in the
electricity sector following the recent tariff reforms, which increased rates
for urban consumers. According to him, the adjustment led to a 70% rise in
industry revenues in 2024, with projections showing a further 41% increase this
year to ₦2.4 trillion ($1.6 billion).
He emphasized that the government’s long-term strategy is to
build a reliable, decentralized power infrastructure that can sustain economic
growth and restore confidence among industrial power users.
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