Nigeria in Talks with China Eximbank for $2 Billion Loan to Fund New ‘Super Grid’ and Reduce Crippling Power Shortages

Nigeria is currently in talks with the China Export and Import Bank (China Eximbank) to secure a $2 billion loan. The primary purpose of this financing is to build a new national “super grid” aimed at overhauling the country’s dilapidated power infrastructure and significantly reducing persistent power shortages.

Purpose and Infrastructure Target
The loan is specifically targeted at the nation’s power grid infrastructure. The Minister of Power, Adebayo Adelabu, stated that the funds will be used to construct a new power line that will serve the eastern and western regions of the country, where most of the industrial consumers are located.

This project is part of a larger plan to decentralize power generation and encourage heavy commercial users, who previously abandoned the unreliable central grid for self-generated power, to return to the national pool.

Currently, although Nigeria has an installed generation capacity of about 13 gigawatts, the central grid can reliably distribute only about one-third of that. The new super grid is intended to increase the distribution capacity and help ensure more of the generated power reaches the nation’s industrial zones. The financing for the new super grid has already been approved by the cabinet.