FG eyes $238m Japan loan for National Grid expansion

The Federal Government is currently discussing a loan funding of $238 million from the Japan International Cooperation Agency (JICA) to expand Nigeria’s national electricity grid network, especially the transmission segment of the power value chain. This was part of the outcome of deliberations at the just-concluded Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan, where the Nigerian delegation was led by President Bola Tinubu, and attended by the Minister of Power, Adebayo Adelabu, and others.

The national delegation held high-level engagements with Japanese stakeholders, including Toshiba, Hitachi, Japan’s Transmission & Distribution Corporation, and Energy Exchange corporations, focusing on transmission infrastructure, operational efficiency, and strategies to reduce system losses. The proposed loan was built on the recent Federal Executive Council (FEC) approvals for counterpart funding of ₦19 billion to catalyse a loan funding of $238 million from the JICA.

The loan funding will support the expansion of the national grid with the addition of 102.95km of new 330kV double circuit (DC) line, 104.59km of new 132kV double circuit (DC) line, four 330/132/33kV substations, two132/33kv substations, two 330kV line bays extension, two 132kV line bays extension, and one 132kV Substation. The Minister also announced that Nigeria is advancing a $190 million renewable energy loan facility supported by the JICA, designed to scale distributed renewable energy solutions across underserved communities. This builds on the recently launched $750 million World Bank Distributed Access through Renewable Energy Scale-up (DARES) programme under the Mission 300 Compact, which aims to bring clean and reliable electricity to more than 17 million Nigerians.

In parallel, three substations funded by JICA through a $32 million grant are set for commissioning in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State). The projects will directly strengthen supply reliability to households, businesses, and industrial clusters, including critical facilities such as the Lagos Port and surrounding industrial areas. In addition, through the partnership with JICA, Adelabu said the National Power Training Institute of Nigeria (NAPTIN) has commissioned a state-of-the-art training equipment in Abuja to strengthen the skills of distribution engineers and tackle network losses.

The facility is designed to deepen local expertise and promote long-term sustainability in sector operations through capacity development, which remains a cornerstone of Nigeria’s power sector strategy.