Nigeria is in talks with the Export-Import Bank of China (China Eximbank) for a $2 billion loan to finance the construction of a national “super grid,” Energy Minister Adebayo Adelabu announced on Monday, October 6.
The project aims to address long-standing energy shortfalls that have hindered economic growth and industrial development for years.
Already approved by the Federal Government, the initiative is part of ongoing efforts to ensure a stable electricity supply—seen as vital for revitalising Nigeria’s manufacturing sector.
The proposed grid will link the country’s eastern and western regions, home to its major industrial hubs.
The situation of Dangote Industries underscores the challenges in the current system. Despite being one of Nigeria’s largest energy consumers, the conglomerate runs its own power plants, generating over 1,500 MW.
It is among more than 200 companies and institutions that have turned to self-generation through thermal and solar facilities, which collectively produce over 6,500 MW—surpassing the national grid’s effective output of about 4,500 to 5,000 MW.
This growing reliance on captive power highlights the private sector’s declining confidence in the national supply. The proposed “super grid” seeks to restore trust by offering more reliable and affordable electricity, encouraging industries to reconnect to the federal network.
According to the International Energy Agency (IEA), about 86 million Nigerians still lacked access to electricity in 2022, giving the country the world’s largest energy access deficit.
Despite an installed capacity of roughly 13 GW, only a fraction of that power reaches end users, leaving Nigeria lagging behind regional peers like South Africa, which operates nearly 70 GW despite having a much smaller population.
Since 2023, the Tinubu administration has rolled out reforms to revive the energy sector, including the removal of fuel subsidies and adjustments to electricity tariffs.