The Federal government of Nigeria has entered negotiations with China's Export-Import Bank (Exim Bank) for a $2 billion loan to construct a state-of-the-art "super grid" aimed at delivering reliable power to industrial heartlands and slashing the nation's heavy dependence on costly diesel generators.
The announcement, made on Monday by Minister of Power Adebayo Adelabu during a keynote address at the ongoing Nigerian Economic Summit in Abuja.
Adelabu described the proposed infrastructure as a high-capacity transmission network spanning Nigeria's eastern and western industrial corridors, where manufacturing hubs and commercial clusters have long suffered from chronic outages that cost the economy an estimated $25 billion annually, equivalent to about 6% of GDP.
"This super grid will not just be lines on a map; it will incorporate cutting-edge digital monitoring systems, smart grid technology, and modern substations to optimize load management and minimize technical losses," Adelabu stated, emphasizing the project's role in rebuilding investor confidence and curbing inflation driven by skyrocketing generator fuel costs.
He highlighted how unreliable power has forced businesses to shift to diesel alternatives, inflating production expenses and stifling growth in Africa's largest economy.
The initiative builds on earlier 2025 successes, including a $2.3 billion Siemens partnership for transmission upgrades announced in April and over $2 billion in funding secured for grid expansions and off-grid electrification by July.
However, the China-backed loan represents a fresh infusion tailored to decentralize power generation, aligning with the Tinubu government's broader energy reforms that prioritize stability, efficiency, and private sector involvement.
Adelabu dismissed concerns, assuring stakeholders that the loan terms would include safeguards against past pitfalls like project delays and corruption.
"This is about sustainable transformation, turning darkness into opportunity for industrialization and job creation," he added, noting President Tinubu's personal oversight in recent high-level talks with international partners.
As negotiations progress, the super grid project could mark a turning point for Nigeria's energy landscape, potentially boosting output in key sectors like manufacturing and agriculture.
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