Nigeria Seeks $2 Billion Chinese Loan to Build New Super Grid, Boost Power Supply

By Erewunmi Peace
The Federal Government of Nigeria has entered negotiations with the Export–Import Bank of China (China Exim Bank) to secure a $2 billion loan aimed at constructing a new national “super grid” that will significantly strengthen electricity transmission and reduce power outages across the country.
Minister of Power, Adebayo Adelabu, disclosed this during an energy investment session in Abuja, explaining that the proposed super grid would link major industrial and economic regions in Nigeria to improve reliability and distribution efficiency.
“The new grid will connect the eastern and western corridors and enable us to transmit more power from generation companies to consumers. We are building a stronger, smarter network capable of ending the recurring collapse of the national grid,” Adelabu said.
According to reports by The Guardian Nigeria, Telegraph Nigeria, and Nairametrics, the project is part of the government’s plan to modernize the national grid, encourage industrial reconnection to public power, and phase down reliance on diesel-powered self-generation.
The Federal Executive Council (FEC) has already approved the financing framework for the project, with discussions between the Ministry of Finance, the Ministry of Power, and China Exim Bank at an advanced stage.
The proposed “super grid” is expected to enhance energy security, integrate renewable energy sources, and support industrial growth by providing stable, high-capacity electricity transmission nationwide.
Industry experts, however, advised the government to ensure transparency in the loan terms and project implementation to prevent cost overruns and delays that have affected previous infrastructure projects.
If finalized, the $2 billion facility will represent one of Nigeria’s largest power-sector financing agreements in recent years and a major step toward achieving consistent electricity supply for homes and industries.