…“Reforms, super grid, industrial power projects to end chronic outages” – Adelabu
The Federal Government has announced sweeping financial and infrastructural interventions to overhaul Nigeria’s electricity sector, including a ₦4 trillion bond to clear outstanding debts to power generation companies (GenCos) and gas suppliers, as well as plans for a $2 billion loan from China’s Exim Bank to build a nationwide ‘super grid’.
Minister of Power, Chief Adebayo Adelabu, disclosed this on Monday in Abuja at the Expert Forum on: ‘Uninterrupted Power: The Industrial Imperative’, organised by the Nigerian Economic Summit Group (NESG). He said President Bola Tinubu approved the bond as part of a broad financial stabilisation plan to restore liquidity, investor confidence, and operational efficiency across the power value chain.
“To stabilise the market, Mr. President has approved a ₦4 trillion bond to clear verified GenCo and gas supply debts. Alongside this, a targeted subsidy framework is being developed to protect vulnerable households and ensure a sustainable path toward full commercialisation”, Adelabu stated.
Adelabu revealed that Nigeria is in advanced talks with China’s Exim Bank for a $2 billion facility to finance a modern high-capacity transmission “super grid” linking industrial corridors nationwide. The project, he said, will feature digital monitoring systems, smart sub-stations, and load-optimisation technology to drastically reduce power losses and dependence on diesel generators which currently cost the economy an estimated $25 billion yearly.
“This ‘super grid’ will turn darkness into opportunity for industrialisation and job creation”, he stated, adding that the project will align with on-going reforms under the ‘Renewed Hope’ agenda to modernise infrastructure, expand transmission, and deepen private sector participation.
The Minister highlighted that the power sector’s revenue rose by 70 percent to ₦1.7 trillion in 2024 and is projected to surpass ₦2 trillion in 2025, following tariff reforms that introduced cost-reflective rates for select consumers.
He also noted progress under the Presidential Power Initiative (PPI), with Phase-Zero already delivering 700MW of new transmission capacity, while Phase One – backed by Siemens Energy, CMEC, Elswedy Electric, and Power China – aims to add 7,000MW to the grid.
Adelabu said other key programmes, including the ‘Light Up Nigeria’ initiative led by Vice-President Kashim Shettima, are targeting industrial clusters in Agbara, Enugu and other hubs to ensure reliable electricity supply for manufacturers.
“The Tinubu administration is pursuing a comprehensive, multi-pronged reform anchored on sustainability, efficiency, and growth. We are determined to end the cycle of darkness that has constrained Nigeria’s economic potential for decades”, Adelabu affirmed.
