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    Nigerian Govt Eyes $238m JICA Loan to Boost National Grid Expansion

    The Nigerian Government is in advanced talks with the Japan International Cooperation Agency (JICA) for a $238 million loan facility aimed at expanding Nigeria’s national electricity grid. 

    The funding, which builds on a ₦19 billion counterpart provision recently approved by the Federal Executive Council (FEC), will focus on strengthening transmission infrastructure and reducing system losses, Channels Tv reports.

    The deal was discussed during the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan, where President Bola Tinubu led Nigeria’s delegation, alongside the Minister of Power, Adebayo Adelabu. 

    Meetings were also held with Japanese energy firms including Toshiba, Hitachi, and Japan’s Transmission & Distribution Corporation, with discussions centering on efficiency improvements and modern grid technology.

    According to the Ministry of Power, the proposed loan 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, as well as multiple line bay extensions. 

    Read Also: Nigeria Produced 1.37tcf of Gas in First Half of 2025 – NUPRC

    In parallel, Adelabu revealed that Nigeria is also pursuing a $190 million renewable energy loan from JICA to expand solar mini-grids and standalone systems in underserved communities, complementing the World Bank-backed $750 million DARES programme, which targets 17 million Nigerians.

    Beyond new projects, JICA-funded infrastructure is already nearing completion, including three substations in Apo (FCT), Keffi (Nasarawa), and Apapa (Lagos), supported through a $32 million grant. 

    These will boost power supply to households, industrial clusters, and strategic hubs such as the Lagos Port. JICA has also supported the National Power Training Institute of Nigeria (NAPTIN) with modern training equipment to build technical capacity among distribution engineers.

    Read Also: East Africa Breaks Ground on $2.15 Billion Cross-Border Railway

    Adelabu acknowledged that only about 60% of Nigeria’s 200 million people currently have electricity access—much of it unreliable. 

    He stressed that the government is working on a dual strategy: expanding grid connections in urban centres while accelerating off-grid solar solutions in rural communities.

    President Tinubu, speaking at TICAD 9, underscored that Nigeria’s partnerships with Japan go beyond ceremonial agreements. 

    “We are deliberately moving from promises to measurable results,” he said, framing the initiative as part of Nigeria’s broader energy transition and industrialisation agenda.

    Image Credit: News Digest

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