Nigeria super grid loan from China gains traction as FG finalises $2bn deal to fix power supply and boost industrial growth

Nigeria super grid loan from China is nearing conclusion as the Federal Government advances talks with China’s Export-Import Bank for a $2 billion facility aimed at transforming the country’s unreliable electricity transmission system.

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The proposed super grid will stretch across Nigeria’s eastern and western regions, significantly improving power distribution to industrial centres long plagued by erratic supply.

Minister of Power Adebayo Adelabu revealed the plan at an economic summit in Abuja, describing it as a strategic move to decentralise power generation and lure heavy energy users back to the national grid.

“It’s part of plans to decentralise power generation in Nigeria and get the heavy commercial users that left the power grid because of its unreliability to return,” said Adelabu.

The minister confirmed that talks with China’s Exim Bank are in advanced stages, and the project has already received federal cabinet approval.

The funding is expected to unlock long-awaited upgrades to Nigeria’s outdated grid infrastructure.

Despite a theoretical generation capacity of 13 gigawatts, only around 4 gigawatts currently reach end users due to poor transmission and frequent system collapses.

In stark contrast, South Africa, with just a quarter of Nigeria’s population, boasts nearly 70 gigawatts in installed capacity — highlighting the scale of Nigeria’s energy shortfall.

Due to the grid’s unreliability, self-generated power now makes up nearly half of Nigeria’s total electricity consumption, burdening businesses with soaring operational costs.

Adelabu said the new super grid would stabilise energy flow to industrial zones, drive manufacturing growth, and boost investor confidence in the energy sector.

Since taking office in 2023, President Bola Tinubu’s administration has introduced sweeping economic reforms.

These include the removal of fuel subsidies, power tariff adjustments, and efforts to improve energy security and sector viability.

In 2024, power distribution companies recorded a 70 per cent revenue increase, with projections indicating earnings may hit ₦2.4 trillion ($1.6 billion) by the end of 2025.

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The government sees the super grid as a game-changer in repositioning Nigeria’s power sector and laying the groundwork for industrial transformation.

Nigeria secures China loan for $2bn super grid project

Nigeria secures China loan for $2bn super grid project