Tinubu Secures $238 Million JICA Loan to Strengthen Nigeria’s Power Grid

Following extensive high-level engagements at the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan, President Bola Ahmed Tinubu has secured a landmark $238 million loan facility from the Japan International Cooperation Agency (JICA) to significantly enhance Nigeria’s national power grid infrastructure. This strategic deal, supported by a counterpart funding of approximately N19 billion approved by the Federal Executive Council, is central to Nigeria’s push to improve electricity supply and reduce system losses nationwide.

President Tinubu emphasized that Nigeria’s objective at TICAD 9 went beyond trade exhibitions to forging substantive, outcome-driven partnerships focused on delivering measurable benefits to the Nigerian populace. “We are deliberately shifting from planning to implementation, from agreements to delivery, and from promises to tangible results,” he remarked.

Under this collaboration, the loan will finance the construction and upgrade of critical transmission infrastructure, including nearly 103 kilometers of new 330kV double circuit lines, about 105 kilometers of 132kV double circuit lines, and the establishment of six new substations comprising four 330/132/33kV and two 132/33kV substations. Furthermore, multiple line bay extensions will be installed to enhance grid efficiency and curtail energy losses.

Complementing this loan-funded expansion, a $32 million JICA grant is set to commission three new substations strategically located in Apo (Federal Capital Territory), Keffi (Nasarawa State), and Apapa (Lagos State). These substations aim to bolster reliable power supply for residential areas, commercial enterprises, and vital industrial zones, including the Lagos Port and its environs.

Minister of Power, Chief Adebayo Adelabu, who led Nigeria’s delegation at TICAD 9 and the critical negotiations, underlined the importance of partnerships with Japanese power corporations such as Toshiba and Hitachi. He highlighted that this financial backing is foundational to Nigeria’s transformation agenda focusing on transmission infrastructure, operational efficiency, and system loss reduction. He also conveyed gratitude for Japan’s ongoing support through JICA, a key partner in Nigeria’s energy transition journey.

The government’s broader strategy addresses Nigeria’s current energy access gap, where only 55 to 60 percent of the population have electricity, much of which is unreliable. The Federal Government continues to expand grid connections in urban centers while accelerating off-grid renewable energy solutions for rural and peri-urban communities. This is further bolstered by a concurrent $190 million renewable energy loan facility from JICA, aimed at scaling distributed renewable energy solutions in underserved areas, alongside the already launched $750 million World Bank program targeting over 17 million Nigerians.

ADVERTISEMENT

Additionally, in synergy with JICA’s support, the National Power Training Institute of Nigeria (NAPTIN) has equipped a state-of-the-art training facility in Abuja to build local capacity for distribution engineers, vital for sustaining network efficiency and reducing losses long term.

This landmark $238 million JICA loan deal, complemented by the counterpart funding and grant projects, marks a significant advance in Nigeria’s power sector, promising improved electricity reliability and sustainability for households, businesses, and critical infrastructure across the country.