Nigeria is negotiating a $2 billion loan with the Export-Import Bank of China to fund the construction of a new national “super grid” aimed at ending chronic power shortages and spurring industrial growth.
Minister of Power, Adebayo Adelabu, disclosed this on Monday, October 6, 2025, in Abuja, explaining that the federal government is seeking China’s financial backing to modernise and expand the country’s electricity transmission network.
According to Adelabu, the proposed super grid project has received Federal Executive Council approval and will be implemented in partnership with the Transmission Company of Nigeria (TCN).
The new infrastructure is expected to link Nigeria’s eastern and western industrial corridors, improving power supply reliability and supporting heavy industries that have struggled with frequent outages.
“The super grid will be a game changer for our power sector,” Adelabu stated, noting that the project will encourage industrial users who previously disconnected from the national grid due to poor reliability to reconnect once stability improves.
Reports indicate that the loan discussions form part of the government’s wider reform plan to overhaul the transmission network and attract private investment into power generation and distribution.
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The initiative also aligns with President Bola Tinubu’s agenda to drive industrial expansion through reliable energy access.
However, analysts have cautioned that Nigeria’s growing debt exposure to China, which already finances major infrastructure projects including railways and roads, may raise sustainability concerns if not carefully managed.
If approved, the loan would mark one of the largest single power infrastructure investments in Nigeria’s history, with implementation expected to begin in 2026 following final financing agreements and technical design approvals.