The Federal Government has secured a $238 million loan facility from the Japan International Cooperation Agency (JICA) to strengthen Nigeria’s national power grid.
The deal was finalized during the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan, following engagements led by President Bola Ahmed Tinubu and the Minister of Power, Chief Adebayo Adelabu.
In a statement released by the Ministry of Power on Friday, President Tinubu emphasized that Nigeria’s participation at TICAD9 was focused on “forging strategic, outcome-driven partnerships” rather than ceremonial diplomacy.
According to the ministry, the JICA loan will be supported with a Federal Executive Council counterpart funding of ₦19.08 billion.
The project will finance the construction of 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 aimed at improving efficiency and reducing system losses.
Adelabu noted that partnerships with Japanese power companies such as Toshiba, Hitachi, and Japan’s Transmission & Distribution Corporation were vital in unlocking Nigeria’s energy potential.
“This $238 million loan from JICA provides the backbone for strengthening our transmission infrastructure, improving operational efficiency, and reducing system losses,” he said.
The minister further expressed appreciation for Japan’s long-standing support in Nigeria’s energy transition, citing contributions in infrastructure, technical studies, training, and financing.
He added that the government remains committed to bridging Nigeria’s energy gap, where only about 55–60 per cent of the population currently has access to electricity.
“This loan complements our broader strategy of expanding grid access in urban centres while also promoting off-grid solutions for rural communities,” Adelabu stated.
The new agreement builds on the recently launched $750 million World Bank Distributed Access through Renewable Energy Scale-up programme, designed to provide clean and reliable electricity to more than 17 million Nigerians.
Additionally, three JICA-funded substations in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State), worth $32 million, are expected to be commissioned soon.
The facilities will directly enhance supply reliability for homes, businesses, and key industrial clusters, including Lagos Port.
Through the partnership, the National Power Training Institute of Nigeria has also acquired modern training equipment in Abuja to build the capacity of engineers and tackle network losses—an initiative aimed at ensuring long-term sustainability of the power sector.
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