The Federal Government of Nigeria is seeking a $2 billion loan from the Export-Import Bank of China (China Exim Bank) to fund the construction of a new “super grid” that will enhance the country’s electricity transmission network.

Minister of Power, Adebayo Adelabu, made this known during the Nigerian Economic Summit held in Abuja on Monday, October 6, according to a report by Bloomberg.

Adelabu explained that the proposed super grid project is designed to tackle Nigeria’s long-standing power shortages by improving the reliability and efficiency of electricity transmission nationwide.

“It’s part of plans to decentralize power generation in Nigeria and get the heavy commercial users that left the power grid because of its unreliability to return,” Adelabu stated.

He said the project will connect Nigeria’s eastern and western regions, linking key industrial zones that have been disconnected from the national grid due to its frequent collapses.

The Federal Executive Council (FEC) has already approved the project’s financing framework, paving the way for negotiations with China’s Exim Bank to commence.

According to the minister, the new grid is expected to significantly reduce power losses, improve transmission efficiency, and strengthen electricity delivery to manufacturing and industrial hubs.

Nigeria’s national grid has suffered repeated system collapses over the years, often triggered by low generation capacity, poor maintenance, and infrastructure bottlenecks — leaving millions of households and businesses in darkness.

Adelabu also noted that the recent electricity tariff reforms have led to notable financial improvements in the sector.

He said the reforms resulted in a 70% increase in industry revenues in 2024, with projections showing a further 41% rise this year to ₦2.4 trillion ($1.6 billion).

The minister emphasized that the government’s long-term strategy focuses on building a reliable, decentralized power system that will sustain economic growth and restore investor confidence in Nigeria’s energy market.