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FG Secures $238M JICA Loan to Bolster Nigeria’s Power Grid at TICAD9



The Federal Government of Nigeria has secured a $238 million loan from the Japan International Cooperation Agency (JICA) to enhance the country’s national power grid, following strategic discussions at the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan, on August 22, 2025. 


The agreement was finalized through high-level engagements led by President Bola Ahmed Tinubu and Minister of Power, Chief Adebayo Adelabu.


The loan, supported by a Federal Executive Council (FEC) counterpart funding of ₦19.08 billion, will finance critical infrastructure projects, including 102.95km of new 330kV double circuit lines, 104.59km of 132kV double circuit lines, four 330/132/33kV substations, two 132/33kV substations, and several line bay extensions. 


These developments aim to improve electricity transmission capacity, enhance grid stability, and reduce system losses across Nigeria. 


President Tinubu, speaking through a Ministry of Power statement, emphasized that Nigeria’s participation at TICAD9 prioritized tangible outcomes over diplomacy. 


“We are shifting from promises to measurable results, focusing on strategic partnerships that deliver for Nigerians,” he said. 


Adelabu, who engaged with Japanese stakeholders like Toshiba, Hitachi, and Japan’s Transmission & Distribution Corporation, described the loan as a “backbone for transformation” in the power sector, addressing operational efficiency and infrastructure gaps. 


The initiative aligns with broader efforts to bridge Nigeria’s energy access gap, where only 55–60% of the population currently has electricity. 


The government is also advancing a $190 million JICA-supported renewable energy loan to scale distributed energy solutions for underserved communities, complementing a $750 million World Bank program under the Mission 300 Compact to provide clean energy to over 17 million Nigerians. 


Additionally, three JICA-funded substations worth $32 million in Apo (FCT), Keffi (Nasarawa), and Apapa (Lagos) are set for commissioning, boosting supply reliability for households and industrial clusters. 


A state-of-the-art training facility for distribution engineers, established through JICA’s partnership with the National Power Training Institute of Nigeria (NAPTIN), was also commissioned to enhance local expertise and sustainability. 


 

 

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