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FG secures $238m JICA loan, plus N19.08bn counterpart funding
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Projects include new transmission lines and substations to reduce system losses
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Complements World Bank DARES programme and JICA-backed substations nearing completion
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 agreement was sealed during high-level engagements led by President Bola Ahmed Tinubu and Minister of Power, Adebayo Adelabu, at the Ninth Tokyo International Conference on African Development (TICAD9) in Yokohama, Japan.
In a statement issued by the Ministry of Power on Friday, Tinubu said Nigeria’s participation at TICAD9 was about forging strategic partnerships that deliver measurable results for citizens. He emphasised a shift from “agreements to delivery” in the government’s approach to development.
The loan, with counterpart funding of N19.08 billion from the Federal Executive Council, will finance key projects including 102.95km of new 330kV double circuit lines, 104.59km of 132kV lines, four 330/132/33kV substations, two 132/33kV substations, and several line bay extensions. The infrastructure is aimed at improving efficiency and reducing system losses across the grid.
Minister Adelabu stressed that discussions with Japanese energy giants like Toshiba, Hitachi, and Japan’s Transmission & Distribution Corporation were critical in unlocking Nigeria’s energy potential.
He described JICA as a reliable partner in Nigeria’s energy transition and highlighted the agency’s support in infrastructure, training, and financing.
The government is also prioritising off-grid solutions for rural communities, where electricity access remains limited. Adelabu noted that despite financing challenges, Nigeria is committed to supportive policies, local manufacturing, and strategic partnerships to close its energy gap.
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The development complements the $750 million World Bank-backed Distributed Access through Renewable Energy Scale-up (DARES) programme, which aims to deliver clean and reliable electricity to over 17 million Nigerians. It also builds on JICA’s $32 million grant projects in Apo, Keffi, and Apapa, where new substations are nearing completion to boost supply for households, businesses, and critical infrastructure like Lagos Port.
Additionally, through collaboration with JICA, the National Power Training Institute of Nigeria (NAPTIN) has commissioned advanced training equipment in Abuja to upgrade the skills of distribution engineers and improve long-term sector operations.
