Nigeria Secures $238m Loan from Japan to Boost National Power Grid
By Erewunmi Peace
The Federal Government of Nigeria has secured a $238 million loan facility from the Japan International Cooperation Agency (JICA) to strengthen the country’s national power grid. The agreement was finalized during high-level engagements led by President Bola Ahmed Tinubu and the Minister of Power at the Ninth Tokyo International Conference on African Development (TICAD 9) held in Yokohama, Japan.
According to the Minister of Power, the loan will fund major expansion projects in Nigeria’s electricity transmission network, including:
Construction of 102.95 km of new 330kV double-circuit lines
Construction of 104.59 km of new 132kV double-circuit lines
Four new 330/132/33kV substations and two 132/33kV substations
Line bay extensions and upgrades to improve grid efficiency
The Federal Executive Council (FEC) has already approved ₦19 billion in counterpart funding to support the implementation of the project.
Speaking at the event, President Tinubu emphasized that the partnership with Japan reflects Nigeria’s commitment to energy stability, economic growth, and foreign investment. He said, “This project will not only improve power supply but also create new opportunities for industrialization and development.”
In addition to the $238 million loan, discussions are ongoing for a $190 million renewable energy loan facility from JICA to support off-grid power solutions for underserved communities. Japan has also committed $32 million in grants for substations in Apo, Keffi, and Apapa, and provided advanced training tools to the National Power Training Institute of Nigeria (NAPTIN).
