Nigeria seeks $238m loan from Japan

The Federal Government is in talks with the Japan International Cooperation Agency (JICA) for a $238 million facility to upgrade Nigeria’s electricity transmission network and improve power supply nationwide.

This funding discussion took place during the Ninth Tokyo International Conference on African Development (TICAD 9) in Yokohama, Japan, where President Bola Tinubu led Nigeria’s delegation alongside the Minister of Power, Adebayo Adelabu, and other senior officials.

The team also met with top Japanese firms such as Toshiba, Hitachi, Japan’s Transmission & Distribution Corporation, and Energy Exchange corporations to explore new investments in transmission infrastructure, grid efficiency, and measures to cut system losses.

The proposed facility builds on a recent Federal Executive Council (FEC) approval for ₦19 billion counterpart funding to unlock JICA’s support. The loan is expected to finance the addition of nearly 103 km of new 330kV double-circuit lines, 105 km of new 132kV double-circuit lines, multiple substations, and line bay extensions across the country.

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Adelabu also revealed that Nigeria is working on a separate $190 million renewable energy loan with JICA to scale solar mini-grids and other off-grid solutions in underserved communities. This complements the $750 million World Bank-backed Distributed Access through Renewable Energy Scale-up (DARES) initiative under the Mission 300 Compact, which aims to bring electricity to over 17 million Nigerians.

In addition, three new substations funded through a $32 million JICA grant are nearing commissioning in Apo (FCT), Keffi (Nasarawa State), and Apapa (Lagos State). These projects will improve power delivery to homes, businesses, and key facilities, including Lagos Port.

Adelabu said JICA has also equipped the National Power Training Institute of Nigeria (NAPTIN) in Abuja with modern training tools to boost technical expertise among local engineers. “This facility is designed to deepen local expertise and promote long-term sustainability in sector operations through capacity development,” he noted.

Speaking at a panel titled “HICKARE Africa: Harnessing Innovation, Co-creation, and Knowledge for Accessible and Resilient Energy for Africa,” Adelabu pointed out that only around 60 percent of Nigeria’s 200 million citizens have access to electricity — and much of that supply is unreliable.

He added that government efforts focus on expanding the grid in cities while accelerating solar and other off-grid systems in rural areas. “Despite persistent challenges such as limited access to affordable capital, cost barriers for rural households, and under-utilisation of productive-use equipment, the government is committed to overcoming these obstacles through supportive policies, strategic private-sector partnerships, and local manufacturing of renewable energy components,” Adelabu said.

He also praised JICA and the Japanese government as “a reliable partner in advancing the country’s energy transition and expanding access to reliable, affordable, and sustainable electricity.”

President Tinubu stressed that Nigeria’s involvement at TICAD 9 was aimed at delivering real impact rather than symbolic agreements. “Nigeria is deliberately shifting from planning to implementation, from agreements to delivery, and from promises to measurable results,” he said.