Nigeria is negotiating a $2 billion loan from China’s Export-Import Bank to fund a new “super grid” aimed at ending the country’s persistent power outages.
Bloomberg reports that Adebayo Adelabu, Nigeria’s Minister of Power, announced the plan at an economic forum in Abuja on Monday.
He explained that the project supports the government’s goal to decentralize electricity generation and encourage major industrial users to reconnect 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,” he said.
The new transmission system will link the country’s eastern and western industrial hubs, restoring reliability and boosting confidence among manufacturers.
Adelabu said the Federal Executive Council approved the project’s funding, paving the way for loan talks with China’s Exim Bank. He emphasized that the super grid will ensure more stable power reaches industrial zones while increasing transmission efficiency.
Nigeria has long struggled with frequent grid failures caused by limited generation capacity, poor transmission infrastructure, and technical faults. The super grid aims to address these issues permanently.
According to Adelabu, industry revenues rose by 70% in 2024 after recent tariff adjustments for urban consumers. He projected a 41% revenue increase this year, reaching ₦2.4 trillion ($1.6 billion).
He said the $2 billion China loan will modernize Nigeria’s power network and boost long-term industrial growth.
