FG Targets $238 million Loan From Japanese Agency To Expand National Power Grid Infrastructure

The Federal Government is holding a discussion with Japan International Cooperation Agency (JICA) for a $238 million loan facility to fund the proposed 

 expansion of Nigeria’s national electricity grid network, especially the transmission segment of the power value chain to boost supply in the country 

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 Ahmed 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 Federal Executive Council (FEC) had recently gave its approval for a counterpart funding of ₦19 billion to catalyse the $238 million loan facility from the JICA.

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.

Speaking during a panel session titled “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa,” Adelabu highlighted Nigeria’s current energy realities, noting that only about 60 percent of the country’s population of over 200 million has access to electricity, much of which remains unreliable.

The Federal Government according to him, is addressing this gap by expanding grid access in urban areas while simultaneously accelerating off-grid solutions, including solar mini-grids and standalone systems, for rural and peri-urban communities.

Despite persistent challenges such as limited access to affordable capital, cost barriers for rural households, and under-utilisation of productive-use equipment, Adelabu reaffirmed the government’s commitment to overcoming these obstacles through supportive policies, strategic private-sector partnerships, and local manufacturing of renewable energy components.

The Minister expressed deep appreciation to JICA and the Government of Japan for their long-standing support to Nigeria’s power sector, recognising JICA as a reliable partner in advancing the country’s energy transition and expanding access to reliable, affordable, and sustainable electricity.

Speaking at the summit, President Tinubu emphasised that Nigeria’s participation at TICAD 9 was not about trade exhibitions, but about forging strategic, outcome-driven partnerships that would deliver tangible results for the Nigerian people.

He stressed that Nigeria is deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results.